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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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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