Homework Answers
As the first payment will be
made at the year and 2019 for the year 2018 we are not taking any
cash flow hence the total NPV is 9,83,058.
The difference is due to rounding off.
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please solve part 2 of problem 1
TTT Problem 1 You won the state lottery on...
please answer question 2 of problem 1 FT T OE Ordnery Problem 1 You won the...
please answer question 2 of problem 1
FT T OE Ordnery Problem 1 You won the state lottery on January 1, 2018. You can elect to receive (a) $1,000,000 at the end of 2019 or i Y $150,000 per year for 10 years with the first payment at the end of 2019. The interest rate is expected to be 6% for 2018 and 7% from 2019 to 2023 and 8% from 2024 onwards. How much is each option worth in...
Alex Meir recently won a lottery and has the option of receiving one of the following...
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $21,000 cash immediately and a six-period annuity of $7,700 beginning one year from today, or (3) a six-period annuity of $13,300 beginning one year from today. 1. Assuming an interest rate of 7%, determine the present value for the above options. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money...
Please show formula to find the answer 1) You have just won the lottery. At the...
Please show formula to find the answer
1) You have just won the lottery. At the end of each of the next 20 years, you will receive a payment of $50,000. If the cost of capital is 10 percent per year, what is the present value of your lottery winnings? 50,000 Cost of Capital Payment Term Rate 20 10% 0 2) A perpetuity is an annuity that is received forever. If I rent my house and at the beginning of...
Please Show all work and formulas! Problem 4 You have just won a lottery of $1...
Please Show all work and formulas! Problem 4 You have just won a lottery of $1 million and you can choose among the following three payout options. The effective annual interest rate (EAR) is 5%. Option A: $200,000 right now and $100,000 every two years, starting 2 years from now and ending 16 years from now. Option B: $100,000 a year at the end of the next 10 years, with the first payment one year from today. Option C: Twenty annual...
You win the lottery! Do you wish to receive $2,000,000 in one payment now, or $167,000...
You win the lottery! Do you wish to receive $2,000,000 in one
payment now, or $167,000 per year for 30 years? To help you in your
decision, estimate the present value of the second option assuming
constant annual interest rates of 6%, 8%, and 10%. Expound on your
decision within a text box. (You may use the built-in PV function
within Excel)
Loans: where: and, interest due at the end of each month A = payment P = principal (amount...
3. You have just been notified that you have won the $2 million lottery! The prize...
3. You have just been notified that you have won the $2 million lottery! The prize will be awarded on your 100" birthday which is 80 years from now. If the current discount rate is 5%, what is the present value of your windfall? Show your work. 4. Your grandfather left you his coin collection in his will. It contains sixty 1952 silver dollars. Assuming your grandfather purchased them at face value ($1 each) when they were new, how much...
please solve this problem as soon as possible. Thank you Class Discussion Exercise On January 1,...
please solve this problem as soon as possible. Thank
you
Class Discussion Exercise On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $1,000,000 March 1, 2018 600,000 June 30, 2018 800,000 October 1, 2018 600,000 January 31, 2019 270,000 585,000 April 30, 2019 August 31, 2019 900,000 On January 1, 2018,...
please be quickly Sha Q-1 If you know the following Items from Balance sheet and Income...
please be quickly
Sha Q-1 If you know the following Items from Balance sheet and Income statements at 31-Dec- 2019 Items Amount Cash 200,000 1,000,000 Inventory Account Receivables Sales 1,800,000 3,000,000 1,000,000 Account Payables Total equity Net income 2,000,000 100,000 The required: Calculate the following ratios: (The formula, your calculation steps, final answer are required) less Finance 27 Midterm.docx x + 1-Retrun on Assets. 2- Return on Equity. 3- If we assume the ROA in 2018 is 1.5. Compare between...
1. For each of the following situations involving single amounts, solve for the unknown. Assume that...
1. For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.) Present Value Future Value i n 1. $80,000 4.5% 9 2. $31,841 $94,000 16 3....
1. Multi-millionaire lottery Suppose you bought a lottery ticket at $100 today, January 5, 2018. You...
1. Multi-millionaire lottery Suppose you bought a lottery ticket at $100 today, January 5, 2018. You will find out the outcome on January 5, 2019. Let X be the possible dollar amount of the payoff you may receive on January 5, 2019 from the lottery. Assume the prevailing interest rate over the next 10 years is flat at 5% (per year). The likelihood of the possible outcome is assumed as follows. 4 Prob(X) 11/369/36 7/36 5/36 3/36 1/36 (1) What...
please answer question 2 of problem 1
FT T OE Ordnery Problem 1 You won the state lottery on January 1, 2018. You can elect to receive (a) $1,000,000 at the end of 2019 or i Y $150,000 per year for 10 years with the first payment at the end of 2019. The interest rate is expected to be 6% for 2018 and 7% from 2019 to 2023 and 8% from 2024 onwards. How much is each option worth in...
Please show formula to find the answer
1) You have just won the lottery. At the end of each of the next 20 years, you will receive a payment of $50,000. If the cost of capital is 10 percent per year, what is the present value of your lottery winnings? 50,000 Cost of Capital Payment Term Rate 20 10% 0 2) A perpetuity is an annuity that is received forever. If I rent my house and at the beginning of...
You win the lottery! Do you wish to receive $2,000,000 in one
payment now, or $167,000 per year for 30 years? To help you in your
decision, estimate the present value of the second option assuming
constant annual interest rates of 6%, 8%, and 10%. Expound on your
decision within a text box. (You may use the built-in PV function
within Excel)
Loans: where: and, interest due at the end of each month A = payment P = principal (amount...
3. You have just been notified that you have won the $2 million lottery! The prize will be awarded on your 100" birthday which is 80 years from now. If the current discount rate is 5%, what is the present value of your windfall? Show your work. 4. Your grandfather left you his coin collection in his will. It contains sixty 1952 silver dollars. Assuming your grandfather purchased them at face value ($1 each) when they were new, how much...
please solve this problem as soon as possible. Thank
you
Class Discussion Exercise On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 $1,000,000 March 1, 2018 600,000 June 30, 2018 800,000 October 1, 2018 600,000 January 31, 2019 270,000 585,000 April 30, 2019 August 31, 2019 900,000 On January 1, 2018,...
please be quickly
Sha Q-1 If you know the following Items from Balance sheet and Income statements at 31-Dec- 2019 Items Amount Cash 200,000 1,000,000 Inventory Account Receivables Sales 1,800,000 3,000,000 1,000,000 Account Payables Total equity Net income 2,000,000 100,000 The required: Calculate the following ratios: (The formula, your calculation steps, final answer are required) less Finance 27 Midterm.docx x + 1-Retrun on Assets. 2- Return on Equity. 3- If we assume the ROA in 2018 is 1.5. Compare between...
1. Multi-millionaire lottery Suppose you bought a lottery ticket at $100 today, January 5, 2018. You will find out the outcome on January 5, 2019. Let X be the possible dollar amount of the payoff you may receive on January 5, 2019 from the lottery. Assume the prevailing interest rate over the next 10 years is flat at 5% (per year). The likelihood of the possible outcome is assumed as follows. 4 Prob(X) 11/369/36 7/36 5/36 3/36 1/36 (1) What...
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