h 07: End of Chapter Problems The Time Value of Money ock to Assignment Attempte Average / 3 27. Problem 7-27 eBook Problem 7-27 A $700,000 state lottery prizes spread evenly over fourteen years (550,000 a year (Alemative 1) or you may take a lump distribution of $357,000 (Alternative 2). If you can earn il percent. Calolate the present values of both tamatives. Use Appendix to answer the question. Round your answers to the nearest deltar PV PV which alternative is better? E Interest Factors for the Present Value of an Annuity of One Dollar Period 1 2 3 5 1 2 4% 28 ex 10% 12% 14% 18% 18%20%285 286 287 28 0.990 0.980 0.971 0.002 0.952 0.943 0.035 0.926 0.911 0.909 0893 0877 0.862 0.847 OB 0.806 0.781 0.758 0735 1970 1942 1943 1886 185 1823 1808 1783 1759 176 1600 164 165 1666 1528 1457 1392 122 1276 2.941 2884 2.829 2.775 2.723 267 26 2577 2531 2.487 2402 2.322 2.246 21M 2.106 1.981 1868 1766 1674 2002 3.808 1.717 3630 3.546 1465 1.387 3.212 1.240 3.170 3.037 2914 2.798 2690 2589 2404 241 2046 1965 4853 471 4580 4/452 4.329 4212 4100 3999 2000 2791 3.605 3.0 3274 2127 2991 2.745 253 2:45 2.181 5.795 5601 5.417 5.242 5076 4917 4 766 4623 4.486 455 4.111 3889 355 3498 3326 3020 2.750 2.54 2.790 6728 6.472 6.230 6.002 5.786 5582 5.30 5.206 5033 48684564 4.288 4099 28121605 3242 2997 2.678 7455 7652 7225 7020 6.733 6.463 6210 5.971 5.747 5575 5.335 4.968 469 444 4078 337 3421 307 2.780 2.500 8566 8.162 776 7435 7108 6.802 6515 6 247 5.985 5.759 53284946 4 607 40 1 1505 2,1542868 2.60) 9.471 93 830 8.111 7722 7.360 7024 6710 6.416.15 560 5.216 4833 44944191 1682 1.20 2.900 2650 7 9 10 11 10.368 9.787 9.252 8.760 106 77 7499 709 6.805 6.495 5988 5.453 5029 4656 221762305 2.978263 12 11.255 10.875 0.954 9.385 8.863 34 7943 75367161 6.814 6.194 5.660 5.1974791 44392951 1187 1012 2.70 13 12.114 11.348 106359.9869394 3534 8.358 904 74877103 6.424 5842 53624910 470 1912 000 272 1413004 12.106.11.206 10.563 9.899 0.295 80 8244 7786737 6628 6.000 568 5008 4611 1902 2450 2061 2740 15 13.865 12.849 11.08 11.118 10:380 9.7129.108 839 8.060 7.606 6811 612 5575 5.092.675 001 24 1025 2.250 E 1718 1 578 12561 11652 10 838 50.106 0.47 8.85 832 754 69166265 5.6 5162 4730003250 308 2755 125562.14.292 0.166 12.566 11.274 10.4770763 9122 8544 800271206373 5740 5 222 2775 2059 3518 3097 2.763 1816.39 12. 13.12.09 11.60 10.82810059 92 8.756 8201 1250 467 5.4 4.00 1.120 1082 19 17226 15571 1472 13:32 12085 108 10336 8950 8.365 2066 6550 5877 516 434 409 357 109 2770 2018.046 165 M2.50 12.462. 1170 10.50449.818.9.125 8.514 746.02 5.9095353 20 01102.506 272 25 22:02:319,523 41 15X22 1409 12.781 1.6 10.675 000 9.02776877 5.091 5469 147 15643122710 30 25.808 27957 19.6002921537) 717.409 11.58 10.279.027 BOSS 2003 6.177 517 379 250 2002
