You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 77 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? Multiple Choice O $1,494.48 $1,591.95 $1,656.93 $1,624.44 $8,283.38
You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 77 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? Multiple Choice O $1,494.48 $1,591.95 $1,656.93 $1,624.44 $8,283.38
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.20MCE
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You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 77 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? Multiple Choice O $1,494.48 $1,591.95 $1,656.93 $1,624.44 $8,283.38
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