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A magic genie shows up and offers you the following prize: you roll a fair 5-sided die (numbered 1 to 5) and she will give
A magic genie shows up and offers you the following prize: you roll a fair 5-sided die (numbered 1 to 5) and she will give you an annual perpetuity with payments of $1000 times the square of whatever you roll. For example, if you roll 4, the genie will give you 1000x4x4 = $16000 each year. Before you roll the die, what is the present value of the cash flows you will receive? A fair die means each outcome has equal probability. The cost of capital is 4% (EAR). Round your answer to the nearest $0.01
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