Question
You won a lottery which pays $10,000 per year for 10 years (at beginning of next year). Assuming a discount rate of 8% calculate the
You won a lottery which pays $10,000 per year for 10 years (at beginning of next year). Assuming a discount rate of 8% calculate the present value of your expected winnings.
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Answer Year Cash Flows PV Factor 8 Present Value 1 1000000 09259 ...Get Instant Access to Expert-Tailored Solutions
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
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