After hearing a knock at your front door, you are surprised to see the Prize...
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After hearing a knock at your front door, you are surprised to see the Prize Patrol from your states online lottery agency. Upon opening your door, you learn you have won the lottery of $ million. You discover that you have three options: you can receive $ million per year for the next years, you can have $ million today, or you can have $ million today and receive $ million for each of the next years. Your lawyer tells you that it is reasonable to expect to earn an annual return of percent on investments. Required: What is the present value of the above options? FV of $ PV of $ FVA of $ and PVA of $ Note: Enter your answers in whole dollar not in millions ie not rounded to nearest whole dollar.
After hearing a knock at your front door, you are surprised to see the Prize Patrol from your states online lottery agency. Upon opening your door, you learn you have won the lottery of $ million. You discover that you have three options: you can receive $ million per year for the next years, you can have $ million today, or you can have $ million today and receive $ million for each of the next years. Your lawyer tells you that it is reasonable to expect to earn an annual return of percent on investments.
Required:
What is the present value of the above options? FV of $ PV of $ FVA of $ and PVA of $ Note: Enter your answers in whole dollar not in millions ie not rounded to nearest whole dollar.
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