Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
I'm trying to figure out the present value of an annuity payout for a lottery winner who can have a payout of 20 equal payments of $36,000 taxed at a...
I'm trying to figure out the present value of an annuity payout for a lottery winner who can have a payout of 20 equal payments of $36,000 taxed at a rate of 25%
SOLUTIONThe present value of the cash flows for annuity payout = $286,297 Annual cashpaymentTax @ 25%Annual cash flow $36,000$9,000$27,000 Present value annuity due factor (8%, 20 years) =...