MPA504 Business Finance Question 5 Question 1a: [7 Marks] Quiz Not yet answered 1 Marked out of 7.00 Finish P Flag question Time le You might have noticed the below advertisement, where the lottery winner will receive $20,000 (twenty thousand dollars) every month for the next twenty years. i) Suppose you win this lottery and have an option to receive a lump-sum amount today. Calculate the amount you should accept, knowing that a discount rate of 4 per cent is applicable. [3 Marks] ii) Suppose you decide to invest $5,000 every month in a global large-cap index fund, which has historically given its investors an annual return of 8 per cent. Calculate the lump sum amount you expect to receive after twenty years when the cash flow from your win stops. [4 Marks] A B I lul