How much is the present value of this cash flows

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Reference no: EM131938614

a. You are promised to receive a payment of $1,300 in one year, $2,300 in two years and $4,500 in three years. If the rate is 5% per year. How much is the present value of this cash flows?

b. You hit the Jackpot and you are offered a life payment of $50,000 per year. Or you can request one payment today (lump sum) to be paid immediately. How much would you request if the interest rate is 3.4% per year?

Reference no: EM131938614

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