Nancy Jackson, a lottery winner, will receive the following payments over the next seven years. She...

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Nancy Jackson, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay Nancy a lump sum today for the rights to those future cash flows. If she can invest her cash flows in a fund that will earn 11.1 percent annually, how much should Nancy require the investor to pay for the cash flows? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) 2 3 4 5 $340,000 $390,000 $415,000 $440,000 $490,000 $540,000 $690,000 Present value of investment Year Nancy Jackson, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay Nancy a lump sum today for the rights to those future cash flows. If she can invest her cash flows in a fund that will earn 11.1 percent annually, how much should Nancy require the investor to pay for the cash flows? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) 2 3 4 5 $340,000 $390,000 $415,000 $440,000 $490,000 $540,000 $690,000 Present value of investment Year

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Heres how to calculate the present value of Nancys lottery winnings and how much she should require ... View the full answer