Time value and discount rates Pecsonal Finance Problom You pust won a lottery that promises to pay you $1,300,000 exactly 20 years from todiry A company approaches you today, offering cash in exchange for your winning lottery ticket a. What would you soll your clalm for if you can eam the following ralos of return on similar-fisk investments during the 20-year period? Do the values you calculated represent the lowest price youd be wiling to accept or the highest acceptable price? (1) 8% (2) 11% (3) 14% b. Rework part a under the assumption that the 51,300,000 payment will bo received in 25 rather than 20 years c On the basho of your findings in parts a and b, discuss the effect of both the size of the rate of return and the time until tecelpt of payment on the present value of a future sam. Click the icon to see the Worked Solution (fomula Solution). Click the icon to see the Worked Solution (Financial Calculator Solution). Click the icon 10 see the Worked Solution (Spreodsheet Solution). a. (1) The liost you wil seli your clalin for if you can earn a rate of retuen of a\% during the 20-year period bs (Riound to the newest cint)