Question
You won the 'set for life' lottery which promises to pay you $1,000 per month forever starting today. At the end of August of each
You won the 'set for life' lottery which promises to pay you $1,000 per month forever starting today. At the end of August of each year you collect a bonus payment of $1,000 to make it easier to go on summer vacation. To make calculations easier suppose that today is Jan 1st. You discount rate is 10% p.a. What is the present value of your price money?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
