Present value of the winnings, Finance Basics

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Present value of the winnings

The $32.5 million lottery payment that you just won actually pays $1.3 million per year for 25 years. If the discount rate is 10% and the first payment comes in 1 year.

a) What is the present value of the winnings?

b) What is the present value of the winnings, if the first payment comes immediately?

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Finance Basics: Present value of the winnings

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Finance Basics: Present value of the winnings

Reference No:- TGS046841

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Recent Questions Asked Finance Basics

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Finance Basics: Present value of the winnings

Reference No:- TGS046841

Recent Questions Asked Finance Basics

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