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Mon 1 Aug, 2016 06:39 am

IN a recent landowner dispute, the landowner's lawyer negotiated a $52,800,000 settlement for a 92-year-lease. The terms of the lease were reported as $5,000,000 immediately, one million per year for five additional years (years 2 - 6), and paid in advance, then $460,000 per year the remainder of the 92 years (years 7 - 92), also paid in advance. Based on a 6.5% discount rate, what is present value of the 10th year's payment? 25th year? 50th year? last years? What is the present value of the entire settlement?