What would the cash option payout be

Reference no: EM13956203

Present value. Winners of the Georgia lotto drawing are given the choice of receiving the winning amount divided equally over 20 year or as a lump-sum cash option amount. The cash option amount is determined by discounting the winning amount at 7% over 20 years. This week the lottery is worth $6 million to a single winner. What would the cash option payout be?

Reference no: EM13956203

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