Calculate the discount rate use by the lottery

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Reference no: EM131882429

You have won the $90,000,000 Powerball Lottery jackpot. You have the option of either receiving $3,000,000 per year for 30 years or receive a lump-sum payment today totaling $40,000,000. Before you decide which option to select, you need to understand what discount rate the Lottery Commission used to determine the lump-sum payout. You can then compare to the investment options you have available for the funds received. Calculate the discount rate use by the Lottery and PLEASE show all calculations.

Reference no: EM131882429

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