What will the annual cash flow be

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1. If you put up $43,000 today in exchange for a 9.7 percent, 10-year annuity, what will the annual cash flow be? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

2. An NBA player is to receive a $1,000,000 signing bonus today and $2,000,000 at the end of one year, two years, and three years from now. Assuming r=10% and ignoring tax considerations, would he be better off receiving $6,000,000 today?

 

Reference no: EM131962680

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