Question
Helen Martin, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay
Helen Martin, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay Helen a lump sum today for the rights to those future cash flows. If she can invest her cash flows in a fund that will earn 10.6 percent annually, how much should Helen require the investor to pay for the cash flows? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | ||||||||
| Year | ||||||||||||||
| $210,000 | $260,000 | $285,000 | $310,000 | $360,000 | $410,000 | $560,000 | ||||||||
What is the Present value of investment?
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Finance For Non Financial Managers
Authors: Pierre Bergeron
6th Edition
0176501630, 9780176501631
