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Answer 1

Answer #1

Year	Cash Flow	Discounting Factor [1/(1.06^year)]	PV of Cash Flows (cash flows*discounting factor)	Cummulative PVs (Current PV+All Previous PVs)
0	85	1	85	85
1	85	0.943396226	80.18867925	165.1886792
2	85	0.88999644	75.6496974	240.8383766
3	85	0.839619283	71.36763906	312.2060157
4	85	0.792093663	67.32796138	379.5339771
5	85	0.747258173	63.51694469	443.0509218
6	85	0.70496054	59.92164594	502.9725677
7	85	0.665057114	56.52985466	559.5024224
8	85	0.627412371	53.33005156	612.8324739
9	85	0.591898464	50.3113694	663.1438433
10	85	0.558394777	47.46355604	710.6073994
11	85	0.526787525	44.77693966	755.384339

As the cummulative, cash flows crosses 740, in 11th year,

We must live AT LEAST 11 Years, to make the lifetime subscription a better buy.

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Answer 2

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