Homework Answers
First payment will be received in the third year which is $25,000
Thereon, Payments continued forever
Terminal value at the end of 3rd year = $25,000 / 0.08
= $312,500
Present value of all cash flows = $312,500 / (1.08)2
Present value of all cash flows = $267,918
Add Answer to:
You have just won the lottery. You and your heirs will receive $25,000 per year forever...
You have just won the lottery and will receive $480,000 in one year. You will receive...
You have just won the lottery and will receive $480,000 in one year. You will receive payments for 29 years, which will increase 5 percent per year. The appropriate discount rate is 11 percent. Required: What is the present value of your winnings? $23,274 $32,083,598 $6,147,204 $32,083,598 $6,403,337
You have just won the lottery and will receive $1,000,000 in one year. You will receive...
You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase by 3.5 percent per year. If the appropriate discount rate is 7.5 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
You have just won the lottery and will receive $530,000 in one year. You will receive...
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 21 years, and the payments will increase 5 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings? Multiple Choice $19,541,407 $5,840,094 $19,541,407 $6,083,431 $59,223
You have just won the lottery and will receive $490,000 in one year. You will receive...
You have just won the lottery and will receive $490,000 in one year. You will receive payments for 30 years, which will increase 3 percent per year. The appropriate discount rate is 11 percent. Required: What is the present value of your winnings? rev: 09_17_2012 $21,405 $51,641,854 $51,641,854 $5,256,545 $5,475,568
Growing Annuity [LO1] You have just won the lottery and will receive $1,500,000 in one year....
Growing Annuity [LO1] You have just won the lottery and will receive $1,500,000 in one year. You will receive payments for 30 years, and the payments will increase by 2.7 percent per year. If the appropriate discount rate is 6.8 percent, what is the present value of your winnings?
QUESTION 16 Your cousin just won the lottery. He will receive $15,000 per year for twenty-five...
QUESTION 16 Your cousin just won the lottery. He will receive $15,000 per year for twenty-five years. What is the present value of these payments assuming a discount rate of 9.247 Assume that payments are at the end of each year.
You have just won the lottery. You will receive $2,600,000 today, and then receive 40 payments...
You have just won the lottery. You will receive $2,600,000 today, and then receive 40 payments of $1,300,000 These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $25 million. The interest rate is an APR of 8 percent compounded daily. Assume there are 12 months in a year, each with 30 days. What is the present vale of cash...
estion 5 points Save Any You just won the lottery and will receive $2.000.000 per year,...
estion 5 points Save Any You just won the lottery and will receive $2.000.000 per year, at the end of each year, for the next 20 years. What would your lump sum payoff be if you selected the "cash option" and will receive the present value of the 20 payments today! Assume a discount rate of 3.5. (PV of an ordinary annuity, round to the nearest dollar). $28.754950 528.04.07 27,180653 1941 122.939.842
You have just won the lottery. You will receive $2,580,000 today, and then receive 40 payments...
You have just won the lottery. You will receive $2,580,000 today, and then receive 40 payments of $1,290,000 These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $20 million. The interest rate is an APR of 10 percent compounded daily. Assume there are 12 months in a year, each with 30 days. What is the present value of the...
Assume that you have just won $5,000,000 in the lottery and will receive $250,000 per year...
Assume that you have just won $5,000,000 in the lottery and will receive $250,000 per year for the next 20 years. How much is your prize worth today if the interest rate is 8%? Select one: a. $1,072,731 b. $2,454,525 c. $2,185,219 d. $1,165,250
You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase by 3.5 percent per year. If the appropriate discount rate is 7.5 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
QUESTION 16 Your cousin just won the lottery. He will receive $15,000 per year for twenty-five years. What is the present value of these payments assuming a discount rate of 9.247 Assume that payments are at the end of each year.
estion 5 points Save Any You just won the lottery and will receive $2.000.000 per year, at the end of each year, for the next 20 years. What would your lump sum payoff be if you selected the "cash option" and will receive the present value of the 20 payments today! Assume a discount rate of 3.5. (PV of an ordinary annuity, round to the nearest dollar). $28.754950 528.04.07 27,180653 1941 122.939.842
Most questions answered within 3 hours.
-
Why has California been the favorite destination of large number
of secondary migrants?
asked 18 minutes ago -
Do not neglect the old for the new. The existing business must
not lose priority simply...
asked 3 hours ago -
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 4 hours ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 6 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 5 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 9 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 9 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 9 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 9 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 10 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 10 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 10 hours ago