Several years ago The Wall Street Journal reported that the winner of the Mass

Several years ago The Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune to be both bankrupt and in
prison for fraud. The prize was $9420713 to be paid in 19 equal annual installments. (There were 20 installments but the winner had already received
the first payment.) The bankruptcy court judge ruled that the prize should be sold off to the highest bidder and the proceeds used to pay off the
creditors.

a. If the interest rate was 8% how much would you have been prepared to bid for the prize?

b. Enhance Reinsurance Company was reported to have offered $4.2 million. Use Excel to find the return that the company was looking for.