You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $680,000 per year. Thus, in one year you receive $1.68 million. In two years, you get $2.36 million, and so on. If the appropriate discount rate is 7.8 percent, what is the value of your winnings today? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

Present Value -

Consider a firm with a contract to sell an asset for $136,000 five years from now. The asset costs $72,000 to produce today.

a.Given a relevant discount rate on this asset of 14 percent per year, calculate the profit (or loss) the firm will make on this asset. (A loss should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)