Lucas saved his tin foil for over 80 years and just sold


Lucas saved his tin foil for over 80 years, and just sold his collection to "Believe it or not" for $25,000,000. Way to go, Lucas! The "Believe it or not" organization will pay Lucas his money in 25 annual installments of $1,000,000 each, with the first payment to be paid immediately. Lucas's interest rate is 5% per year. What is the present value equivalent of Lucas's tin foil sale at time of the first payment (time zero)?

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Business Economics: Lucas saved his tin foil for over 80 years and just sold
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