The state lottery's million-dollar payout provides for $1.5 million to be paid in 20 installments of $75000
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The state lottery's million-dollar payout provides for $1.5 million to be paid in 20 installments of $75000 per payment. The first $75000 payment is made immediately, and the 19 remaining $75000 payments occur at the end of each of the next 19 years. If 8 percent is the discount rate, what is the present value of this stream of cash flows If 16 percent is the discount rate, what is the present value of the cash flows?
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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