Present Value Analysis of the Available Option Based on the Cash Flows Flowing From a Lottery Option
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FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT 5(5) Financial Management Author’s Note: Question 1 2 Question 2 2 References 4 Question 1 The present value analysis of the available option was done with the help of the given available option whereby the cash flows flowing from a lottery option would be analysed with the help of the annual compounded monthly discount rate of 9.38%, which was computed as follows: Annual Interest Rate Monthly Compounding Annual Rate 9% Months in a Year 12 Monthly Interest Rate 0.75% Monthly Compounding Annual Rate 9.3