Question: please please solve it step by step with all numbers and make sure it is correct answer pleaseA 2 - 8 You just won a
please please solve it step by step with all numbers and make sure it is correct answer pleaseA You just won a lottery! The annuitized jackpot involves payments o
you, with the amounts listed below.
You currently have savings in a brokerage account that have averaged
returns for each of the last five years, and you expect that level
of annual return to continue over each of the next five years. For each
of the lollowing questions, support your decision with a proper time
value of money calculation.
A If the lottery offered you $ today in lieu of the above stated
payments, would you take the cash or the six payments over the
nexi five years?
B If you accept the payments and invest the money in your broker
age account, how much cash will have accued from the lottery
payments and accrued interest by the end of year five?
C Beginning today time zero what five uniform beginning of
period payments would be equivalent to the original annual
payments?
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