Rita won $60 million lottery. She is to receive $1 million a year for the next 50 years plus an additional lump sum of $10 million after the 50th year. The discount rate is 10%. What is the present value of her winnings?

To calculate the present value of Rita's winnings, we will discount each cash flow to its present value and then sum them up. Let's break down the cash flows:

1. $1 million received each year for the next 50 years
2. An additional lump sum of $10 million at the end of the 50th year

To discount these cash flows, we'll use the discount rate of 10%. To calculate the present value of each cash flow, we can use the formula:

Present Value = Cash Flow / (1 + Discount Rate)^n

Let's calculate the present value for each cash flow:

For the $1 million annual payments:
- The first year's payment has a present value of $1 million / (1 + 0.10)^1 = $909,090.91
- The second year's payment has a present value of $1 million / (1 + 0.10)^2 = $826,446.28
- The third year's payment has a present value of $1 million / (1 + 0.10)^3 = $751,314.79
- This pattern continues until the 50th year, which has a present value of $1 million / (1 + 0.10)^50 = $68,058.07

For the lump sum payment at the end of the 50th year:
- The $10 million payment has a present value of $10 million / (1 + 0.10)^50 = $3,843,541.80

To find the present value of Rita's winnings, we sum up the present value of each cash flow:

Present Value = Sum of the present values of the annual payments + Present value of the lump sum payment
Present Value = ($909,090.91 + $826,446.28 + ... + $68,058.07) + $3,843,541.80

Note: Since there is a pattern in the annual payments, we could simplify the calculation using the present value of an annuity formula. However, for demonstration purposes, I've shown the calculation step by step.

Let me calculate that for you.