You just won the lottery. You and your heirs will receive $25,000 per year forever, beginning one year from now.
I need help in understanding these, if you can explain, how you came to your answer. a. You just won the lottery. You and your heirs will receive $25,000 per year forever, beginning one year from now. What is the present value of your winnings at an 8% discount rate? b. You are supposed to receive $2,000 five years from now