What rate of return is the buyer expecting

Reference no: EM13272057

Andy just won an $80,000,000 lottery in Washington. Instead of receiving a lump sum, he found that he would receive $3,200,000 annually (end of year) for 25 years. Andy is 65 years old and wants his money now. He has been offered $25,778,500 to sell his ticket. What rate of return is the buyer expecting to make if Andy accepts the offer?

Reference no: EM13272057

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