[Jonty30]

You only get the entire $640 million, minus taxes, if you’re willing to be paid out over the next 20 years. If you take the lump sum, you get considerably less.

[Bob]

You only get the entire $640 million, minus taxes, if you’re willing to be paid out over the next 20 years. If you take the lump sum, you get considerably less.

Yeah, since the $640 million was split three ways, I suppose that the $105 million could be the amount after taxes for winning the $213 million won by each of the three. (I think I could get by on that.)

[campaignPete R-CT]

the IRR (interest) on the 20 x $10.65 m payments is 9.15%.

So the lump sum would have to earn 9.15% after tax to equal the value of the payments.

I am assuming 20 equal pmts received at the beginning of the year. The 9% seems outrageously high ... meaning the lump sum given is much too low. Either:
a. the imformation is wrong
b. or taking the lump sum is dumb.