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Determining the present value of winnings

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 30 years and the payments will increase 2.5 percent per year. If the appropriate discount rate is 6.5 percent, what is the present value of your winnings?

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Finance Basics: Determining the present value of winnings

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the present value of winnings

Reference No:- TGS0675653

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What is the correct adjusting entry

Q : Effective annual rate on loan

Q : Find cost of internal common equity for long-term growth

Q : The midst of a business downturn

Q : Determining the present value of winnings

Q : Explain and analyzing the philosophical theories

Q : How many units must be made

Q : Find the additional investment in net working capital

Q : Determine minimum acceptable total revenue

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Determining the present value of winnings

Reference No:- TGS0675653

Recent Questions Asked Finance Basics

Q : What is the correct adjusting entry

Q : Effective annual rate on loan

Q : Find cost of internal common equity for long-term growth

Q : The midst of a business downturn

Q : Determining the present value of winnings

Q : Explain and analyzing the philosophical theories

Q : How many units must be made

Q : Find the additional investment in net working capital

Q : Determine minimum acceptable total revenue

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