You and 11 coworkers just won $1616 million ($1 comma 333 comma 333.331,333,333.33 each) from the state lottery. Assuming you each receive your share over 1717 years and that the state lottery earns a 66 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option?
You and 11 coworkers just won $1616 million ($1 comma 333 comma 333.331,333,333.33 each) from the state lottery. Assuming you each receive your share over 1717 years and that the state lottery earns a 66 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
You and 11 coworkers just won
$1616
million
($1 comma 333 comma 333.331,333,333.33
each) from the state lottery. Assuming you each receive your share over
1717
years and that the state lottery earns a
66
percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option?
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