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Author Question: You win the lottery and must decide how to take the payout. Use an 8% discount rate for all parts of ... (Read 75 times)

karlynnae

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You win the lottery and must decide how to take the payout.  Use an 8% discount rate for all parts of this question.

Required:
1.  What is the present value of $10,000 a year received at the end of each of the next six years?
2.  What is the present value of taking a $50,000 lump sum now?
3.  What is the present value of a $85,000 lump sum taken in 7 years?


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Marked as best answer by karlynnae on Jan 5, 2020

SomethingSomething

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karlynnae

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Reply 2 on: Jan 5, 2020
YES! Correct, THANKS for helping me on my review


Perkypinki

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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