What is the present value of the cash? flows

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Reference no: EM131572771

The state? lottery's million-dollar payout provides for $1.2 million to be paid in 25 installments of ?$48000 per payment. The first $48000 payment is made? immediately, and the 24 remaining ?$48000 payments occur at the end of each of the next 24 years. If 7 percent is the discount? rate, what is the present value of this stream of cash? flows? If 14 percent is the discount? rate, what is the present value of the cash? flows?

a. If 7 percent is the discount? rate, the present value of the annuity due is ?$___?

b. If 14 percent is the discount? rate, what is the present value of the cash? flows?

Reference no: EM131572771

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