document.write( "Question 33745: Prizes are often not \"worth\" as much as claimed. What is the real value of a prize of $5,000,000 which is to be received in equal payments over 20 years, with the first payment beginning today? Assume an interest rate of 5% over the 20 years. \n" ); document.write( "
Algebra.Com's Answer #20164 by venugopalramana(3286)\"\" \"About 
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TABULATE AS FOLLOWS IN XL WORK SHEET WHICH IS SELF EXPLANATORY.IF YOU GO TO FUNCTIONS-FINANCIALS AT THE END AND GIVE THE DISCOUNT RATE OF 0.05 AND NET INFLOW COLUMN AS THE DATA,YOU WILL GET NPV AT THE END.THE FORMULA IN XL IS.
\n" ); document.write( "=NPV(0.05,D256:D275)WHERE 0.05 IS THE DISCOUNT RATE GIVEN AS 5% PER YEAR AND D256:D275 IS THE COLUMN WHERE NETINFLOW IS DEPICTED.IF YOU WANT TO KNOW MATHMATICAL FORMULA FOR THIS PLEASE COME BACK AND WE SHALL EXPLAIN \r
\n" ); document.write( "\n" ); document.write( "IT IS WORTH $3,115,552.59 TO DAY
\n" ); document.write( "YEAR INFLOW OUTFLOW NETINFLOW
\n" ); document.write( "1 250000 250000
\n" ); document.write( "2 250000 250000
\n" ); document.write( "3 250000 250000
\n" ); document.write( "4 250000 250000
\n" ); document.write( "5 250000 250000
\n" ); document.write( "6 250000 250000
\n" ); document.write( "7 250000 250000
\n" ); document.write( "8 250000 250000
\n" ); document.write( "9 250000 250000
\n" ); document.write( "10 250000 250000
\n" ); document.write( "11 250000 250000
\n" ); document.write( "12 250000 250000
\n" ); document.write( "13 250000 250000
\n" ); document.write( "14 250000 250000
\n" ); document.write( "15 250000 250000
\n" ); document.write( "16 250000 250000
\n" ); document.write( "17 250000 250000
\n" ); document.write( "18 250000 250000
\n" ); document.write( "19 250000 250000
\n" ); document.write( "20 250000 250000
\n" ); document.write( "
\n" ); document.write( "NPV $3,115,552.59 \n" ); document.write( "
\n" );