The state lotterys million-dollar payout provides for 1


The state lottery's million-dollar payout provides for $1 million to be paid out over the course of 19 years in equal cash amounts. The first payment is made immediately, and the remaining 19 payments occur at the end of each of the next 19 years. If 10% is the discount rate, what is the present value of this stream of cash flows? Hint: First calculate the payment amount.

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Financial Management: The state lotterys million-dollar payout provides for 1
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