Assume that you just won 85 million in the powerball, Ask an Expert

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Assume that you just won $85 million in the Powerball lottery, and hence the lottery will pay you 25 annual payments of $3.4 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 25-year U.S. Treasury bonds) is 3.75 percent, what is the present value of your winnings?

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Financial Management, Finance

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