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You have just received the notification that you have won the $250,000 prize in the lottery. However, the prize will be awarded in 30 years. Since you urgently need the cash, you want to sell the right to collect this award. Today, someone suggests that he will pay $55,000 if you sell the award today.

1) If the appropriate discount rate is 5%, is it fair?

2) What is the minimum price you are willing to sell?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92714733

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