Kershaw Bales won the state lottery and was given four choices for receiving her winnings. Receive...
Kershaw Bales won the state lottery and was given four choices for receiving her winnings.
Receive $500,000 right now.
Receive $540,000 in one year.
Receive $50,000 at the end of each year for 20 years.
Receive $45,000 at the end of each year for 30 years.
Assuming Kershaw can earn interest of eight percent compounded annually, which option should Kershaw choose? Use Excel or a financial calculator for computation. Round answers to the nearest dollar.
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Kershaw Bales won the state lottery and was given four choices
for receiving her winnings.
Receive...
Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving...
Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving her winnings. 1. Receive $250,000 right now. 2. Receive $270,000 in 1 year. 3. Receive $45,000 at the end of each year for eight years. 4. Receive $22,500 at the end of each year for 40 years. Assuming Kerry can earn interest of 8% compounded annually, (a) calculate each option and (b) determine which option Kerry should choose? Use Excel or a financial calculator...
Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving...
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Gabrielle just won $2.5 million in the state lottery. She is given the option of receiving a total of $1.3 million now,...
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