You have been awarded $1 million following a civil trial. The $1 million is scheduled to be

Question:

You have been awarded $1 million following a civil trial. The $1 million is scheduled to be paid out as follows: $300,000 in exactly 1 year, another $300,000 in exactly 2 years, and the remaining $400,000 in exactly 3 years. You have recently started a business venture and would like to raise as much capital as you can now, so you have solicited bids from several companies to sell the rights to your structured settlement. If you use a of 10% for all business and personal transactions, what is the minimum amount you should accept in exchange for the rights to the structured settlement?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...