Question
a) Joan Lucky won the $44 million lottery. She is to receive $2.0 million a year for the next 17 years plus an additional lump-sum
a) Joan Lucky won the $44 million lottery. She is to receive $2.0 million a year for the next 17 years plus an additional lump-sum payment of $10.0 million after 17 years. The discount rate is 9 percent.
What is the current value of her winnings? Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Current Value $
B) Delia has a choice between $109,000 in 10 years or $35,000 today.
a. Calculate the present value of $109,000, If long term rates are 9 percent? (Round "PV Factor" to 3 decimal places. Round the final answer to the nearest whole dollar.)
Present value $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started