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Exercise 14 A-6 (Static) Basic Present Value Concepts [LO14-7] The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest
Exercise 14 A-6 (Static) Basic Present Value Concepts [LO14-7] The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery. Mr. Ormsby won the week's grand prize totaling $1.6 million. The State Lottery Commission indicated that Mr. Ormsby will recelve his prize in 20 annual installments of $80,000 each. Click here to view and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 12% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) EXIIBIT 14-1 Present Yalue of \$1: 11+AN41 EXHBTT 14B-2 Present Valoc of an Aneulity of 51 in Arrears: r1[1n+p21] Exercise 14 A-6 (Static) Basic Present Value Concepts [LO14-7] The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery. Mr. Ormsby won the week's grand prize totaling $1.6 million. The State Lottery Commission indicated that Mr. Ormsby will recelve his prize in 20 annual installments of $80,000 each. Click here to view and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 12% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) EXIIBIT 14-1 Present Yalue of \$1: 11+AN41 EXHBTT 14B-2 Present Valoc of an Aneulity of 51 in Arrears: r1[1n+p21]
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