3 Part 2 of 3 b oints Ac Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate c Required information [The following information applies to the questions displayed below.] Lab Insight: You win the lottery (yay!) and you're trying to decide whether to take the $4,250,000 one-time lump sum or get $200,000 annually for life. Assume you're 25 years old and expect to live until you're 88. What should you do? Required: 1. Determine whether you should take the $4,250,000 as a lump sum payment or get $200,000 per year for life using net present value (NPV) and internal rate of return (IRR) analyses. Open Excel File Alt Lab 9-1 Data.xlsx and browse its contents. 2. Note the differences between Alt Lab 9-1 and Lab 9-1. a. The net present value of cash flows should be evaluated using 3, 5, and 7 percent discount rates (different from the 2, 4, and 6 percent used in Lab 9-1). b. The annuity is paid from age 25 to 88 (different from the age 86 in Lab 9-1). Ask the Question: Should you take $4,250,000 as a lump sum payment or get $200,000 per year for life? Master the Data: Apply the same steps as Lab 9-1 to the Alt Lab 9-1 Data.xlsx dataset. We'll do two types of analyses, net present value analysis using the Excel NPV() function as well as internal rate of return analysis using IRR(). We'll build the spreadsheet together to help perform this analysis. Software needed Excel Screen capture tool (Windows: Snipping Tool; Mac: Cmd+Shift+4) Data: Alt Lab 9-1 Data.xlsx ( Prey 3 4 of 16 ME Next >

Required information (The following information applies to the questions displayed below) Lob Insight: You win the lottery (yay') and you're trying to decide whether to take the $4,250,000 one-time lump sum or get $200,000 annually for life. Assume you're 25 years old and expect to live until you're 88 . What should you do? Required: 1. Determine whether you should take the $4,250,000 as a lump sum payment or get $200,000 per year for life using net present value (NPV) and internal rate of return (IRR) analyses. Open Excel Flle Alt Lab 9-1 Data.xlsx and browse its contents. 2. Note the differences botween Alt Lab 91 and Lab 9-1. a. The net present value of cash flows should be evaluated using 3,5 , and 7 percent discount rates (different from the 2. 4, and 6 percent used in Lab 9.1). b. The annuity is paid from age 25 to 88 (different from the age 86 in Lab 91 ). Ask the Question: Should you take $4,250,000 as a lump sum payment or get $200,000 per year for life? Moster the Dota: Apply the same steps as Lab 9.1 to the Alt Lab 9.1 Dataxisx dataset. We'll do two types of analyses, net present value analysis using the Excel NPV0 function as well as internal rate of return analysis using IRRO. We'll bulld the spreadsheet together to help perform this analysis. Softwore needed - Excel - Screen capture tool (Windows; Snipping Tool; Mac: Cmd+Shift+4) Required information (The following information applies to the questions displayed below) Lob Insight: You win the lottery (yay') and you're trying to decide whether to take the $4,250,000 one-time lump sum or get $200,000 annually for life. Assume you're 25 years old and expect to live until you're 88 . What should you do? Required: 1. Determine whether you should take the $4,250,000 as a lump sum payment or get $200,000 per year for life using net present value (NPV) and internal rate of return (IRR) analyses. Open Excel Flle Alt Lab 9-1 Data.xlsx and browse its contents. 2. Note the differences botween Alt Lab 91 and Lab 9-1. a. The net present value of cash flows should be evaluated using 3,5 , and 7 percent discount rates (different from the 2. 4, and 6 percent used in Lab 9.1). b. The annuity is paid from age 25 to 88 (different from the age 86 in Lab 91 ). Ask the Question: Should you take $4,250,000 as a lump sum payment or get $200,000 per year for life? Moster the Dota: Apply the same steps as Lab 9.1 to the Alt Lab 9.1 Dataxisx dataset. We'll do two types of analyses, net present value analysis using the Excel NPV0 function as well as internal rate of return analysis using IRRO. We'll bulld the spreadsheet together to help perform this analysis. Softwore needed - Excel - Screen capture tool (Windows; Snipping Tool; Mac: Cmd+Shift+4)