Edsel wins a 250 million lottery prize the money is paid, Microeconomics

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Edsel wins a 250 million lottery prize the money is paid

Edsel wins a $250 million lottery prize. The money is paid out in equal instalments over 40 years beginning one year from today. What is the present value of the lottery prize to Edsel in the following cases? 1) If his discount rate is 15%? 2) If his discount rate is 25%?

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Microeconomics: Edsel wins a 250 million lottery prize the money is paid

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Microeconomics: Edsel wins a 250 million lottery prize the money is paid

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