A lottery winner can take 6 million now or be paid 600000


A lottery winner can take $6 million now or be paid $600,000 at the end of the next 16 years. The winner calculates the internal rate of revenue (IRR) of taking the money at the end of each year and estimating that the discount rate across this period will be 4%, decides to take the money at the end of each year. Was her decision correct? Why?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A lottery winner can take 6 million now or be paid 600000
Reference No:- TGS01393865

Expected delivery within 24 Hours