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please explain thank you! Sandra Robinson, a lottery winner, will receive the following payments over the next seven years. She has been approached by an
please explain thank you!
Sandra Robinson, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay Sandra 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 9.5 percent annually, how much should Sandra require the investor to pay for the cash flows? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) 2 3 4 5 6 7 Year $377,000 $427,000 $452,000 $477,000 $527,000 $577,000 $727,000 Present value of investmentStep by Step Solution
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