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If you win a $500m lottery, did you actually win $500m if the cash is payable...

If you win a $500m lottery, did you actually win $500m if the cash is payable over 20 years? Explain.

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No, the lottery amount won is not exactly equal to $500m because the money given today is worth more than paid over as future cash flows as per Time value of money. Because the cash is paid ver 20 years, the actual present value comes much lower than $500m when discounted back to today ( t= 0). Therefore it is much better to have $500m today than being paid ver 20 years

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