Question
You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year and grow at a rate of 5%
You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year and grow at a rate of 5% forever. If the discount rate is 8%, what is the present value of this investment?
$350,000.00
$400,000.00
$300,000.00
$500,000.00
None of the above
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
