Computing present value of earnings


Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of 1.175 miillion wache beginning immediately. If the rate of return on securities of similar risk to the lottery earnings(e.g. the rate on 20 year U.S. Treasury bonds) os 6 percent , what is the present value of your earnings?

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Finance Basics: Computing present value of earnings
Reference No:- TGS038802

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