The state lottery's million dollar payout provides for $1. 4 million to be paid in 25 installments of $56,000 per payment
The first $56,000 payment is made immediately, and the 24 remaining $56, 000 payments occur at end each of the next 24 years
If 12 percent the discount rate, what is the present value of this stream of cash flows? If 24 percent is the discount rate what is the present value of the cash flows?
a if 12 percent is me discount rate, the present of the due is ( $ Round to the nearest cent)
b,. If 24 percent is discount rate, the present value of the due is $ (Round to nearest cent)