What is the present value of stream of cash flows

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Present value

The state lottery's million-dollar payout provides for $22 million(s) to be paid over

19 years in 20 payments of $100,000. The first $100,000 payment is made immediately, and the

19 remaining $100,000 payments occur at the end of each of the next 19 years.

If 11 percent is the appropriate discount rate, what is the present value of this stream of cash flows?

If 22 percent is the appropriate discount rate, what is the present value of the cash flows?

Reference no: EM131868145

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