Can someone please help with this finance question that uses excel or you can do...
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Can someone please help with this finance question that uses excel or you can do by hand but show the formula please.
CHIC TON CACCISCO 2. You are given the option between 2 lottery prizes: $1,000,000 to be received in 10 years from today. $2,000,000 to be received in 20 years from today. a) Assuming a discount rate (roughly) equivalent to the interest rate on a savings account (1%- nowadays that a pretty good one), which lottery prize is worth more to you today? b) Now, assume that a risk premium is added to the discount rate and now you estimate a discount rate of 5% should be used. Which lottery prize should you pick now? (Question 2 hint: discount the prizes to present value). (2 points per correct part (a) and (b), 4 total. Show calculations.)
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