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Please show all math simplified - if possible, use Excel Present Value Computation Kerry Bales won the state lottery and was given four choices for
Please show all math simplified - if possible, use Excel
Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving her winnings.
- Receive $1,000,000 right now.
- Receive $1,080,000 in 1 year.
- Receive $180,000 at the end of each year for eight years.
- Receive $90,000 at the end of each year for 30 years.
Assuming Kerry can earn interest of 8% compounded annually, (a) calculate each option and (b) determine which option Kerry should choose? Use Excel or a financial calculator for computation. Round your answer to nearest dollar.
Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving her winnings. 1. Receive $1,000,000 right now. 2. Receive $1,080,000 in 1 year. 3. Receive $180,000 at the end of each year for eight years. 4. Receive $90,000 at the end of each year for 30 years. Assuming Kerry can earn interest of 8% compounded annually, (a) calculate each option and (b) determine which option Kerry should choose? Use Excel or a financial calculator for computation. Round your answer to nearest dollar. 1,000,000 (a) 1. $ (a) 2. $ (a) 3. $ (a) 4. $ (b) Option 3 Ox 0 x
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