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Question

You have just won the lottery. You will receive $2,440,000 today, and then receive 40 payments of $1,220,000 These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $26 million. The interest rate is an APR of 8 percent compounded daily. Assume there are 12 months in a year, each with 30 days. What is the present value of the cash flows from your lottery winnings? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)