Question: Please dont do it on excel Problem 2: Sweepstakes Example Suppose you win the Publishers Clearinghouse $10 million sweepstakes. The money is paid in equal

Please dont do it on excel Problem 2: Sweepstakes Example Suppose

Please dont do it on excel

Problem 2: Sweepstakes Example Suppose you win the Publishers Clearinghouse $10 million sweepstakes. The money is paid in equal annual installments of $333,333.33 over 30 years. If the appropriate discount rate is 5% 2. 1 How much is the sweepstakes actually worth today? 2. 2 They offer a perpetuity option for the sweepstakes. How much is it worth if you get $200,000 per year forever? . Which one is better

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