PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 2. PRESENT VALUE. A lucky Mr. Jaen Montilla, participated in the raffle of a raffle parallel to Melate called Presentimiento, and won the...

PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS

2.
PRESENT VALUE. A lucky Mr. Jaen Montilla, participated in the raffle of a raffle parallel to Melate called Presentimiento, and won the jackpot. He won $1'000,000.00. The sponsoring company has two payment options: a) Give him the million pesos in monthly installments over the next 10 years, which would mean an amount equal to $8,333.33 per month. b) Or a lump sum at present value. If we consider a rate of 8%, with monthly compounding, what would be the minimum amount Montilla would have to accept to be indifferent to one option or the other?