Present equivalent of spiveys lottery

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Reference no: EM13739909

Spivey just won the Powerball lottery! The $25,000,000 jackpot will be paid in 10 annual instalments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the present equivalent of Spivey's lottery winnings at the time of the first payment?

Reference no: EM13739909

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Present equivalent of spiveys lottery : Spivey just won the Powerball lottery! The $25,000,000 jackpot will be paid in 10 annual instalments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the p..

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