As a winner of a lottery you are going to receive $10,000 every year forever

QUESTION 1As a winner of a lottery you are going to receive $10,000 every year forever, starting one year from today. If the appropriate discount rate is 8%, what is the present value of the award cash flows?$100,000$125,000$40,000$20,00050,0001 pointsQUESTION 2If you buy a factory for $100,000 and the terms are 10% down, the balance of $90,000 to be paid off over 8 years at a 8% rate of interest on the unpaid balance, what are the 8 equal annual payments?13,92115,66116,41317,02418,222

 

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