Suppose that you received notification from lotto corporation that your winning number combination (11 17 45 38 9 48) won the 6/58 Ultra Lotto. The prize is $99,535,210.00. However, the price will be awarded on your 100th birthday (because why not), which is 78 years from now. What is the present value of your lottery prize if the discount rate is 10%?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
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Suppose that you received notification from lotto corporation that your winning number combination (11 17 45 38 9 48) won the 6/58 Ultra Lotto. The prize is $99,535,210.00. However, the price will be awarded on your 100th birthday (because why not), which is 78 years from now. What is the present value of your lottery prize if the discount rate is 10%?

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