Assume that you have won a lottery. One option is collecting $41,247 for 16 years. What...
Assume that you have won a lottery. One option is collecting $41,247 for 16 years. What is a a reasonable lump sum settlement at an interest rate of 0.11?.
Homework Answers
Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=41,247/1.11^16
=41,247*0.188292204
=$7766.49(Approx).
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