Thursday
December 18, 2014

Homework Help: Finance

Posted by Brian on Saturday, July 10, 2010 at 8:04pm.

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 30 years, which will increase 5 percent per year. The appropriate discount rate is 8 percent.
What is the present value of your winnings?

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