(Present value of annuitypayments) The statelottery's million-dollar payout provides for $1.3 million to be paid in 25...
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(Present value of annuitypayments)The statelottery's million-dollar payout provides for $1.3 million to be paid in 25 installments of $52,000 per payment. The first $52,000 payment is madeimmediately, and the 24 remaining $52,000 payments occur at the end of each of the next 24
24 years. If 9 percent is the discountrate, what is the present value of this stream of cashflows? If 18 percent is the discountrate, what is the present value of the cashflows?
a.If 9 percent is the discountrate, the present value of the annuity due is $
b.If 18 percent is the discountrate, the present value of the annuity due is $
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