The $55.0 million lottery payment that you have just won actually pays $2.2 million per year for 25 years. The interest rate is 10%. a. If the first payment comes in 1 year, what is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.) Present value I b. What is the present value if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in

The $55.0 million lottery payment that you have just won actually pays $2.2 million per year for 25 years. The interest rate is 10%. a. If the first payment comes in 1 year, what is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places.) Present value I b. What is the present value if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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