What is the present value of your winnings

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Reference no: EM131323220

Assume that you just won $250 million in the Powerball lottery, and hence the lottery will pay you 25 annual payments of $10 million each year beginning immediately.

If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 25-year U.S. Treasury bonds) is 3.75 percent, what is the present value of your winnings? Show work

Reference no: EM131323220

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