The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $70,000 a year for the next 20 years. With a discount rate of 13 percent, what is the present value of your winnings?

The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $70,000 a year for the next 20 years. With a discount rate of 13 percent, what is the present value of your winnings?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $70,000 a year for the next 20 years.

With a discount rate of 13 percent, what is the present value of your winnings?

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