The state lotterys million dollar payout provides for 2


The state lottery's million dollar payout provides for $2 million to be paid over 24 years in 25 payments of $80,000. The first $80,000 payment is made immediately, and the 24 remaining $80,000 payments occur at the end of each of the next 24 years. If 11 percent is the appropriate discount rate, what is the present value of this stream of cash flows?

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Financial Management: The state lotterys million dollar payout provides for 2
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