Determine what is present value of the stream of cash? flows

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Problem 1: The state? lottery's million-dollar payout provides for ?$1.5 million to be paid in 20 installments of ?$75,000 per payment. The first ?$75,000 payment is made? immediately, and the 19 remaining ?$75,000 payments occur at the end of each of the next 19 years. If 6 percent is the discount? rate, what is the present value of this stream of cash? flows? If 12 percent is the discount? rate, what is the present value of the cash? flows?

Reference no: EM132795942

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