Assignment:
A wealthy philanthropist has established the following endowment for a hospital. The details are as follows: a cash deposit of $ 8 M one year from now; an annual cash deposit of $3M per year for the next five years. The first $3M will start today; at the end of 5 years, the hospital will also receive a lump sum payment of $18M. Assuming the cost of money is 3%, what is the value of this endowment in today's dollars? Show your work.
Provide complete and step by step solution for the question and show calculations and use formulas.