Please help! Please explain with calculator inputs. Thank you.
You have just won a lawsuit. The settlement will pay either a single lump sum settlement today, or the
following cash flows (assume the following cash flows come at the end of the period):
Year 1: $10,000
Years 2-4: $ 5,000
Years 5 onward (forever): $ 3,000
You can presently earn 8% on your investments.
What is the least you should accept today as a lump sum settlement?