Karen White, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay her a lump sum today for the rights to those future cash flows. If she can invest her cash flows in a fund that will earn 10.70 percent annually, how much should Karen require the investor to pay for the cash flows? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) 0 2 3 + + $326,000 $376,000 $401,000 $426,000 $476,000 $526,000 $676,000 1 4 Present value of investment $ 5 6 + 7 Year
Karen White, a lottery winner, will receive the following payments over the next seven years. She has been approached by an investor who will pay her a lump sum today for the rights to those future cash flows. If she can invest her cash flows in a fund that will earn 10.70 percent annually, how much should Karen require the investor to pay for the cash flows? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) 0 2 3 + + $326,000 $376,000 $401,000 $426,000 $476,000 $526,000 $676,000 1 4 Present value of investment $ 5 6 + 7 Year
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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