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The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the states newest millionaire. By choosing the six winning numbers on last weeks state lottery, Mr. Ormsby won the weeks grand prize totaling $1.42 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $71,000 each.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:

1. If Mr. Ormsby can invest money at a 7% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.)image text in transcribed

The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.42 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $71,000 each. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 7% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value

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