1. Play-2-Win is the latest lottery game in your country, and you happen to be the latest winner of $2.5 million. Your government has a guarantee on the funds and will not be paid before 10 years from today. You can however sell your claim today at a rate of 6 percent for a lump sum cash payment. What is the least amount you will sell your claim?

2. Assume you will receive $2,000 a year in Years 1 through 5, $3,000 a year in years 6 through 8, and $4,000 in year 9 with all cash flows to be received at the end of the year. If you require a return of 14 percent annually, what is the present value of these cash flows?

Answer rating: 100% (QA)

1 Value receive after 10 years 250000 Annual interest rate 6 ... View the full answer