What is the value of this endowment in today dollars

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Question - A philanthropist has established the following endowment. The details are:

a) A cash deposit $1 million one year from now.

b) An annual cash deposit of $ 200,000 per year for the next 10 years. The 1st payment will be made today.

Assuming the opportunity cost is 4%, what is the value of this endowment in today's dollars?

Reference no: EM132905980

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