The $40 million lottery payment that you have just won actually pays $2 million per year for

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The $40 million lottery payment that you have just won actually pays $2 million per year for 20 years. The interest rate is 8%.

a. If the first payment comes in I year, what is the present value of the winnings?

b. What is the present value if the first payment comes immediately?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 30, 2016 09:10 AM

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The $40 million lottery payment that you have just won actually pays $2 million per year for

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Fundamentals of Corporate Finance

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