Present value of the cash flows from your lottery winnings

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You have just won the lottery. You will receive $2,510,000 today, and then receive 40 payments of $1,255,000 these payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $25 million. The interest rate is a 8 percent APR compounded daily. Assume there are 12 months in a year, each with 30 days.

What is the present value of the cash flows from your lottery winnings? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Reference no: EM13726184

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