marks 2.5 I (75 Unsure How vividly do you remember the biggest man-made environmental catastrophe in...

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marks 2.5 I (75 Unsure How vividly do you remember the biggest man-made environmental catastrophe in American history-millions of gallons of oil flowing unchecked into the Gulf of Mexico from an undersea well? In response to this tragedy. British Petroleum (BP) made payments into a fund to pay for some of the damages to the Gulf Coast resulting from their massive oil spill in April and following months of 2010. BP paid $3 billion at the end of the third quarter of 2010 and another $2 billion in the fourth quarter of 2010. BP then made payments of $1.25 billion each quarter thereafter until a total of $20 billion was paid into the fund. If the opportunity cost of capital (interest rate) is 3% per quarter, what is the equivalent value of this payment stream at the beginning of the third quarter of 2010? O a. $15.27 billion O b. $16.53 billion Oc Od e. $16.96 billion $15.83 billion None of the above marks 2.5 I (75 Unsure How vividly do you remember the biggest man-made environmental catastrophe in American history-millions of gallons of oil flowing unchecked into the Gulf of Mexico from an undersea well? In response to this tragedy. British Petroleum (BP) made payments into a fund to pay for some of the damages to the Gulf Coast resulting from their massive oil spill in April and following months of 2010. BP paid $3 billion at the end of the third quarter of 2010 and another $2 billion in the fourth quarter of 2010. BP then made payments of $1.25 billion each quarter thereafter until a total of $20 billion was paid into the fund. If the opportunity cost of capital (interest rate) is 3% per quarter, what is the equivalent value of this payment stream at the beginning of the third quarter of 2010? O a. $15.27 billion O b. $16.53 billion Oc Od e. $16.96 billion $15.83 billion None of the above

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We all know that value of money decreases with time so we have formula for the de... View the full answer