The $63.0 million lottery payment that you just won actually pays $3.5 million per year for 18 years. If the discount rate is 12.60% and the first payment comes in 1 year.
a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
Present value $ _____ in millions
b. What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
Present value $ _____ in millions