Your corporation just won a lawsuit and was awarded $15,000.  The judge has asked your attorneys whether they would accept six equal yearly payments, beginning at the end of the year. Your corporation's opportunity cost of capital is 6 percent.  What would be the difference in the value of the settlement if your attorneys could convince the judge to have the payments commence immediately?

SHOW THE TIMELINES AND SOLVE USING THE GRID METHOD

Answer rating: 100% (QA)

To calculate the difference in the value of the settlement based on the timing of the payments end o... View the full answer