Using Excel, Create a new worksheet for each problem. You must construct a timeline for each problem in Excel. The timeline must include a column for the period, a column for the given cash flow and a column for the present value or future value. Each row represents a period. You must solve each problem two different ways. The first is using a formula (for example, PV = FV/(1+r)^t). The second is using the Excel function (for example, =PV(...)

Question: A lottery winner has the option to receive $1,000,000 today or receive $25,000 every 3 months for the next 10 years. Which is worth more? Assume you can earn a rate of return of 4.00%

Examples of what needed:

\begin{tabular}{l|rc|} \hline Future Value & 250,000 & PV=FV/(1+i)t \\ Interest Rate & 5% & 132580.34 \\ \hline Number of Periods & 13 & \end{tabular} tant - the Qnteace tan 1 camen Normal stae and Lazoned 4 A B C E F G H \begin{tabular}{|c|c|c|c|c|} \hline Period & CF & PV or FV & D & E \\ \hline 1 & 5000 & 4,545.45 & =PV(D.1,A2,0,B2,0) \\ \hline 2 & 6000 & & & \\ \hline 3 & 7000 & & \\ 4 & 0 & & \\ \hline 5 & 0 & & \end{tabular}