An elderly ice skating clown accidentally slips at the ice, Financial Management

An elderly ice skating clown accidentally slips at the ice

An elderly ice skating clown accidentally slips at the ice rink and breaks his hip. Since the ice rink staff neglected to put a “CAUTION: ICE IS SLIPPERY” sign up, this clown sues and wins a settlement. The judge awards him a settlement of $200,000 that will be paid to the clown in 3 years. What is the present value of that settlement if return rates in today’s market are 7%?

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Financial Management: An elderly ice skating clown accidentally slips at the ice

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Financial Management: An elderly ice skating clown accidentally slips at the ice

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