7) Another pleasant fellow emails to inform you that you have won a Swiss lottery. You can take your winnings in a lump sum of $2,000,000 or receive annual end of year payments of $105,000 for 30 years. Assuming that your money can earn 3% a year, what is the value of the annual annuity stream option? (round to the nearest dollar)

7) Another pleasant fellow emails to inform you that you have won a Swiss lottery. You can take your winnings in a lump sum of $2,000,000 or receive annual end of year payments of $105,000 for 30 years. Assuming that your money can earn 3% a year, what is the value of the annual annuity stream option? (round to the nearest dollar)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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