Someone recently told me that York University is holding a lottery with a $3 million prize: it pays $3/yr for a million years.
To all economics students: what is the approximate net present value of the prize?
You could generate an income of $3/yr forever at an interest rate of 3%/yr. with an investment of only $100. That's a pretty good rough approximation of the NPV of the prize (depending on interest rate expectations, risk, etc.).
btw, I have no evidence that York really is holding such a lottery. At the same time, I have no evidence that they aren't.