You have just won third prize in a lottery, worth $427,980. Instead of taking the lump sum,
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You have just won third prize in a lottery, worth $427,980. Instead of taking the lump sum, you choose to receive an amount each year for 15 years. This option has the added advantage of earning 8% interest annually over the period you receive the payments. How much will your annual benefit be, assuming the first payment occurs 1 year from now?
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Computation of the Future amount is worth Given information Present value 427980 Winner thinks to ta...View the full answer
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Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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