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your help will be highly appreciated As winner of a breakfast cereal competition, you can choose one of the prizes given below. If the interest
your help will be highly appreciated
As winner of a breakfast cereal competition, you can choose one of the prizes given below. If the interest rate is 11%, what is the present value of each prize? a. $115,000 now Present value $ b. $228,000 at the end of seven years (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value c. $12,500 a year forever (Round your answer to 2 decimal places.) Present value $ d. $20,500 for each of 9 years (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ e. $9,250 next year and increasing thereafter by 3% a year forever (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ f. Of prizes a through e, which one is the most valuable? Most valuable prize (Click to select)Step by Step Solution
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