You have recently won the super jackpot in the Washington State Lottery. On reading the fine...

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You have recently won the super jackpot in the Washington State Lottery. On reading the fine...

You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have the following two options:

a.	You will receive 31 annual payments of $310,000, with the first payment being delivered today. The income will be taxed at a rate of 28 percent. Taxes will be withheld when the checks are issued.

Calculate PV of winnings assuming 7% discount rate

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