Susan Wilson has won a state lottery and will receive a payment of $89,000 every year,...
Susan Wilson has won a state lottery and will receive a payment of $89,000 every year, starting today, for the next 20 years. If she invests the proceeds at a rate of 5.51 percent, what is the present value of the cash flows that she will receive
Homework Answers
Present value is calculated using the PV function:-
=PV(rate,nper,pmt,fv,1)
=PV(5.51%,20,-89000)
=1062702.18
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