What is the present value of the cash? flows

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The state? lottery's million-dollar payout provides for $3 ?million(s) to be paid over 24 years in 25 payments of $120,000. The first $120,000 payment is made? immediately, and the 24 remaining $120,000 payments occur at the end of each of the next 24 years.

a) If 7 percent is the appropriate discount? rate, what is the present value of this stream of cash? flows?

b) If 14 percent is the appropriate discount? rate, what is the present value of the cash? flows?

Reference no: EM132842569

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