5-36B. (Present value) The state lottery's million-dollar payout provides for $1 million to be paid over 24
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5-36B. (Present value) The state lottery's million-dollar payout provides for $1 million to be paid over 24 years in $40,000 amounts. The first $40,000 payment is made immediately with the 24 remaining $40,000 payments occurring at the end of each of the next 24 years. If 10 percent is the appropriate discount rate, what is the present value of this stream ofcash flows? If20 percent is the appropriate discount rate, what is the present value of the cash flows?
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Related Book For 
Financial Management Principles And Applications
ISBN: 9780131450653
10th Edition
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
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