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  3. you just won the lottery for $1 million. when you

You just won the lottery for $1 million. When you go to the government office...

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Accounting

You just won the lottery for $1 million. When you go to the government office to pick up your check, they tell you the $1 million is payable in 20 annual payments of $50,000 and you can receive your first check today. Alternatively, if you want "all cash" now, you can accept a one-time payment of $745,700. Obviously, the government has an implied discount rate built in this structure. What is the implied discount rate?

Ch3 a. 3.23 b. 3.30 c. 3.04 d. 2.97

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