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QUESTION TWO Koronya has won a Roton lottery and will receive the following cash inflows: Year 1 Sh 200,000 Year 2 Sh 500,000 Total Sh
QUESTION TWO
Koronya has won a Roton lottery and will receive the following cash inflows:
Year 1 Sh 200,000
Year 2 Sh 500,000
Total Sh 700,000
If interest rate is 6% compounded annually, what is the present value of the Roton earnings?
If the interest rate is 6% compounded quarterly, what is the present value of the Roton earnings?
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