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As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 15%, find the PV
As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 15%, find the PV for each of the prizes. (Do not round Intermediate calculations, Round your answer to 2 decimal places.) PV $260000 now $196000 at the end of five years. $21900 a year forever. $27000 for each of 10 years. S8100 next year and increasing thereafter by 8% a year forever. b. Which is the most valuable prize? $260,000 now. $196,000 at the end of five years. O $21.900 a year forever. O $27.000 for each of 10 years. $8,100 next year and increasing thereafter by 8% a year forever
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