Question
You are receiving an annuity that pays out $2,686at the end of each year for the next 14years.Alternatively,you can receive a lump sum today equal
You are receiving an annuity that pays out $2,686at the end of each year for the next 14years.Alternatively,you can receive a lump sum today equal to the present value of the remaining payments.If you do so,the remaining payments will be discounted at a rate of 7%,compounded annually.How much would you receive today if you opt for the lump sum payment?Round to two decimal places(Ex.$00.00)
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
