Answer:
Annual payment $5,833,333.3
Explanation:
he sooner the amount is received, the higher is the present value
Hence, annuity with greatest present value is:
An annuity that pays $1,000 at the beginning of each year
Value of annuity = Annual payment*Present value annuity factor
11,417.87 = Annual payment*PVAF(9.5%, 6 years)
11,417.87 = Annual Payment*4.4198
Annual payment = $2,583.35
Annual payment = 35,000,000/6 = $5,833,333.33
