Suppose a state lottery prize of $3 million is to be paid in 20 payments of $150,000 each at the end of each of the next 20 years. If money is worth 12%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.)

Suppose a state lottery prize of $3 million is to be paid in 20 payments of $150,000 each at the end of each of the next 20 years. If money is worth 12%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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