CH 10-2 10-3 10-4 You have just paid $20 million in the secondary market for the winning

CH 10-2 10-3 10-4 You have just paid $20 million in the secondary market for the winning

Financial Management principles and practice: By Gallagher and Andrew (4th edition)

10-2 You have just paid $20 million in the secondary market for the winning Powerball lottery ticket, The prize is $2 million at the end of each year for the next 25 years. If your required rate of return is 8%, what is the net present value (NPV) of the deal?

10-3 What is the internal rate of return (IRR) of the Powerball deal in question 10-2?

10-4 What is the modified internal rate of return (MIRR) of the Powerball deal in question 10-2?  SOLUTION