Joe black just won a 550000 lottery in pennsylvania instead


Joe Black just won a $550,000 lottery in Pennsylvania. Instead of receiving a lump sum, he found that he would receive $25,500 annually (end of year) for 20 years. Joe is 75 years old and wants his money now. He has been offered $140,827 to sell his ticket. What rate of return is the buyer expecting to make if Joe accepts the offer?

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Financial Management: Joe black just won a 550000 lottery in pennsylvania instead
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