What is present value of the winnings

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Reference no: EM131322316

The $63.0 million lottery payment that you just won actually pays $3.5 million per year for 18 years. If the discount rate is 12.60% and the first payment comes in 1 year.

a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value $ _____ in millions

b. What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Present value $ _____ in millions

Reference no: EM131322316

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