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Stacey Trail has just won the Lotto. Her prize pays $40,000 at the end of each year for 5 years. In addition, she will receive
Stacey Trail has just won the Lotto. Her prize pays $40,000 at the end of each year for 5 years. In addition, she will receive a one-time payment of $240,000 at the end of 5 years using the following factors at 10%, what is the present value of Stacey's winning? (n) Periods )Interest rate Factor Type of cash flow PV of $1 FV of $1 PV ordinary annuity FV ordinary annuity PV annuity due 10% 10% 10% 10% 10% 62092 1.61051 3.79079 6.10510 4.16986 $484,204 $553,317 O $300,653 $440,000
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