5.10 We saw in Example 5.8 that the 25-year annuity factor for an ordinary annuity is 12.9057. Therefore, the 25-year annuity-due factor would be 12.9057 x 1.059 = 13.6672. The pres- ent value of the winnings would increase to $11.828 x 13.6672 $161.7 million. You canalso put your calculator in begin mode; enter n = 25, i = 5.9, FV = 0, PMT = 11.828; and compute PV. Alternatively, in Excel use the formula =PV(.059,25,11.828,0,1). Starting the 25-year cash-flow stream immediately, rather than waiting 1 year, increases value by about $9 million.