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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 12%, find the PV
As winner of a breakfast cereal competition, you can choose one of the following prizes: a. If the interest rate is 12%, find the PV for each of the prizes. b. Which is the most valuable prize? Complete this question by entering your answers in the tabs below. Required A Required B If the interest rate is 12%, find the PV for each of the prizes. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. $220,000 now. $192,000 at the end of five years. $17,400 a year forever. $25,000 for each of 10 years. $7,700 next year and increasing thereafter by 5% a year forever.
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