Question 6 10 pts You just won the lottery. Your payout will start exactly 2 years from now with payment of $80,000 per year forever, which can be transferred to any other person indefinitely. What is the present value of these lottery winnings if the appropriate discount rate is 7%? $1,068,091 O $998,216 O $1,142,857 ○ $800,000 O Infinitely large
Question 6 10 pts You just won the lottery. Your payout will start exactly 2 years from now with payment of $80,000 per year forever, which can be transferred to any other person indefinitely. What is the present value of these lottery winnings if the appropriate discount rate is 7%? $1,068,091 O $998,216 O $1,142,857 ○ $800,000 O Infinitely large
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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Transcribed Image Text:Question 6
10 pts
You just won the lottery. Your payout will start exactly 2 years
from now with payment of $80,000 per year forever, which
can be transferred to any other person indefinitely. What is the
present value of these lottery winnings if the appropriate
discount rate is 7%?
$1,068,091
O $998,216
O $1,142,857
○ $800,000
O Infinitely large
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