Business, 30.11.2019 02:31 jarvinmcgillp3dhni

According to a news item, the owner of a lottery ticket paying $3 million over 20 years is offering to sell the ticket for $1.2 million cash now. "who knows? " the ticket owner explained. "we might not even be here in 20 years, and i do not want to leave it to the dinosaurs." suppose the ticket pays $150,000 per year at the end of each year for the next 20 years, and the appropriate rate for discounting the future income is thought to be 15% the present value of the ticket is approximately true or false: if the discount rate is in the 15% range, the sale price of $948,289 is reasonable (within 10% of the present value of the ticket). true false

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According to a news item, the owner of a lottery ticket paying $3 million over 20 years is offering...