You win te lhery and must decide EHl (Cick the loon to view the present value of

Question

You win te lhery and must decide EHl (Cick the loon to view the present value of $1 table.) (Cick the lon to view the present value of arruity of $1 table )I O A $75,000 O C. $115,830 how to take the payout. Use a 10% discount rate whats the present value of $15,000 year received at the end ofeach of the rest five years? O Data Table Present Value of $1 Periods 10% 0.62 12% 0.587 0.507 0.822 0747 0681 0 630 O D. $9,315 0.760 0.731 0.666 0.467 0424 0.386 0.404 0.361 0.322 0 502 0 500 70IO 580463 10 0.558 Data Table Present Value of Annuty of $1 Periods 6% 4 212 4 452 3.791 4.355 3605 4 623 5 200 6.002 0 733 5 582 6 210 6.602 1.3M0 4.968 5.326 650 6.335 6 247 Click to select your anewer

Explanation / Answer

Answer is $56,865

Explanation:

Computation of Present value = Annual reciepts X PV of Annuity $1 at 10% discount rate for 5 years = $15,000 X 3.791 =$ 56,865

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