Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you just won the tvm lottery. you will receive $1

You just won the TVM Lottery. You will receive $1 million today plus another 10...

80.2K

Verified Solution

Question

Accounting

image

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $540,000 per year. Thus, in one year you receive $1.54 million. In two years, you get $2.08 million, and so on. If the appropriate discount rate is 6.4 percent, what is the present value of your winnings? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g. 1,234,567.89.) Answer is complete but not entirely correct

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students