Present value of windfall


Problem:

You have just received notification that you have won the $2.1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 70 years from now.

Required:

Question: What is the present value of your windfall if the appropriate discount rate is 11 percent?

Note: Provide support for rationale.

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Accounting Basics: Present value of windfall
Reference No:- TGS0890897

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