What is the present value of the lump sum option, Accounting Basics

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What is the present value of the lump sum option

The billboard for the Florida Lottery announces an $18,000,000 prize to the winner. The winner has the option of receiving the $18,000,000 paid in 30 annual installments of $600,000 or as a lump sum based on the present value of the payments. Assuming that the lottery commission uses an interest rate of 4.5% to calculate the lump sum, what is the present value of the lump sum option?

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Accounting Basics: What is the present value of the lump sum option

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Accounting Basics: What is the present value of the lump sum option

Reference No:- TGS0681382

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Recent Questions Asked Accounting Basics

Q : What is the equity method balance

Q : Calculate total cost transferred from the first processing

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Q : What amount would she have to invest

Q : What is the present value of the lump sum option

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Q : The gross profit method to estimate inventory for monthly

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is the present value of the lump sum option

Reference No:- TGS0681382

Recent Questions Asked Accounting Basics

Q : What is the equity method balance

Q : Calculate total cost transferred from the first processing

Q : Significance of the expression for business analytics

Q : What amount would she have to invest

Q : What is the present value of the lump sum option

Q : Number of students that will pass

Q : The plants contribution format income statement for october

Q : Probability of the teams splitting six games

Q : The gross profit method to estimate inventory for monthly

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