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1 pts You have just won a lottery. For a prize, you (or your heirs) will receive a cash payment each year forever. You will
1 pts You have just won a lottery. For a prize, you (or your heirs) will receive a cash payment each year forever. You will receive your first payment of $1,000 one year from today. However, after that, your payment will increase by an annual rate of 10% for the next two years (.e., you receive $1,100 two years from today and $1,210 three years from today) and will then increase at an annual rate of 3% forever. What is today's value of the cash flows if the appropriate discount (interest) rate is 12% ? Select the range that includes the correct answer. Less than $10,000 O Greater than or equal to $10,000 but less than $11,000 Greater than or equal to $11,000 but less than $12,000 Greater than or equal to $12,000 but less than $13,000 Greater than or equal to $13,000
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