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You won the lottery and will collect your winning in the following 3 installments. Your payments will come at the end of the year. Assume
You won the lottery and will collect your winning in the following installments. Your payments will come at the end of the year.
Assume the appropriate discount rate is compounded annually.
Year : $
Year : $
Year : $
What is the present value of your cash flow?
$
$
$
Please DO NOT show me excel computations. Please show me calculations through equations. If possible, financial calculator computations would be appreciated as well.
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