Problemassume that you just won 125 million in the, Ask an Expert

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Problem:

Assume that you just won $125 million in the Powerball lottery, and hence the lottery will pay you 20 annual payments of $6.25 million each beginning immediately.

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Question: If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 20-year U.S. Treasury bonds) is 4 percent, what is the present value of your winnings?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166281

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