You just won a 10 million grand prize payable in annual


You just won a $10 million grand prize payable in annual payments of $250,000 per year for each of the next 40 years beginning today. Suppose you can earn an 8 percent rate of return on your investments and someone offers you 3.2 million for the cash flow stream. Is this offer a good deal from your perspective?

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Accounting Basics: You just won a 10 million grand prize payable in annual
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