Pv Lump Sum V Annuity Payment for Lotto Jackpot

Choosing a Lump-Sum Payout or Annuity Payout for Mega one thousand thousands Jackpots: The Better Choice from a Present Value Perspective Managerial Finance FINA 5303 Wayland Baptist University slacken of Contents access3 Literature Review3 Model6 Results of Model9 Summary and Conclusions11 Appendices13 References14 Introduction For centuries, muckle take away participated in various forms of lotteries. One of the earliest records of a rough drawing dates back to May 9, 1445 in LEcluse, France where the city brocaded finances to build walls and town fortifications. The drafting sold 4,304 tickets and awarded 1,737 florins in contribute prize money (Shelley, 1989). Today, lotteries offer payouts in the millions of dollar signs and ar among the most popular games offered across the United States. One of the most-popular, and largest, lotteries offered is the Mega Millions game. Mega Millions, which began on August 31, 1996 as the Big Game, is a U. S. multi-jurisdictional $1 lottery game played in 44 jurisdictions: 42 states positivist the District of Columbia and the U.S. Virgin Islands.

Since it replaced The Big Game in May 2002, Mega Millions advertised slews have started at $12 million, give in 26 yearly installments (unless the cash extract is chosen), change magnitude when there is no jackpot winner. The Mega Million rente is an rente due, where the boundic allowances are make at the beginning of the period, as opposed to a regular annuity where the payments are made at the end of each period (Mega Millions). Mega Millions holds the record for the largest jackpot in North American history, a! $656 million dollar jackpot won on April 30, 2012. In January 1999, Mega Millions provided its players with the option of choosing amidst a cash option payout and a 26-year annuity payout (Mega Millions). This account examines the differences between the Mega Millions lump sum payment and the Mega Millions annuity payment from a Present Value (PV) perspective in an...If you take to get a full essay, order it on our website: OrderCustomPaper.com

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