Question: 1. Why is it not possible to determine the future value of a perpetual stream of cash flows? Can we determine the value of an

Why is it not possible to determine the future value of a perpetual stream of cash flows? Can we determine the value of an annuity? Explain with an example

You have just won first division in the State lottery andhave a choice betweenthree alternatives as to how your prize is to be received. You can get $100,000 now, or $10,000 per year in perpetuity, or $50,000 now and $150,000 at the end of 10 years. If the appropriate discount rate is 12% per annum, which option should you choose

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