Explain what is the present value of your winnings
You have just won the lottery and will receive $650,000 in one year. You will receive payments for 30 years, which will increase 3 percent per year. The appropriate discount rate is 11 percent. Required: What is the present value of your winnings?
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You have just won the lottery and will receive $650,000 in one year. You will receive payments for 30 years, which will increase 3 percent per year. The appropriate discount rate is 11 percent.
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