Bobs Lottery Incorporated has decided to offer winners a choice of $180,000 in 10 years...
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Accounting
Bobs Lottery Incorporated has decided to offer winners a choice of $180,000 in 10 years or some amount currently. Assume that Bobs Lottery Incorporated earns a 12 percent after-tax rate of return. What amount should Bob's offer lottery winners currently in order to be indifferent between the two choices? Use Exhibit 3.1.
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