If you won the lottery and had the choice of a lump-sum payoff or an annuity payoff, what factors...
If you won the lottery and had the choice of a lump-sum payoff or an annuity payoff, what factors would you consider besides the implied interest rate (indifference interest rate) in selecting the payoff style? Provide a quantitative example to illustrate your choice.
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If you won the lottery and had the choice of a lump-sum payoff or an annuity payoff, what factors...
If you won the lottery should you take a lump sum or an annuity? Why?
If you won the lottery should you take a lump sum or an annuity? Why?
If you won the lottery for $10 million and you had the choice to take a...
If you won the lottery for $10 million and you had the choice to take a lump sum or payments over 20 years, a. which option would you choose? Why? b. What questions do you need answered before you decide? c. What situations may change your decision? Please cite your sources.
You have just won the $1,000,000 in the lottery. You have the option of taking a lump sum payout or equal annualized pay...
You have just won the $1,000,000 in the lottery. You have the option of taking a lump sum payout or equal annualized payments over 20 years. Ignoring any tax consequences; how much should you expect from the annualized payments. What target interest rate would make the annualized payments more valuable than the lump sum. In your response, you may want to consider such issues as inflation, investing lump sum in stock market (What have been the long-term historic returns?) to...
You have just won the $1,000,000 in the lottery. You have the option of taking a lump sum payout or equal annualized pay...
You have just won the $1,000,000 in the lottery. You have the option of taking a lump sum payout or equal annualized payments over 20 years. Ignoring any tax consequences; how much should you expect from the annualized payments. What target interest rate would make the annualized payments more valuable than the lump sum. In your response, you may want to consider such issues as inflation, investing lump sum in stock market (What have been the long-term historic returns?) to...
Your friend just won the lottery. He has a choice of receiving $122,788 a year for...
Your friend just won the lottery. He has a choice of receiving $122,788 a year for the next 18 years or a lump sum today. The lottery uses a 8% discount rate. What would be the lump sum your friend would receive?
Suppose you won the Tri-State Megabucks Lottery in the previous question. What factors should you take...
Suppose you won the Tri-State Megabucks Lottery in the previous question. What factors should you take into account in deciding whether you should take the annuity option or the lump-sum option? Ross, Stephen. Essentials of Corporate Finance (p. 154). McGraw-Hill Higher Education. Kindle Edition.
You just have won the PA lottery. This provides a payout of $50,000 per year for...
You just have won the PA lottery. This provides a payout of $50,000 per year for 20 years beginning immediately. What kind of annuity does this represent? What factors should you consider as you make the decision to take either the annuity or a lump sum payable immediately? Give at least 5 reasons for each alternative.
You just have won the PA lottery. This provides a payout of $50,000 per year for...
You just have won the PA lottery. This provides a payout of $50,000 per year for 20 years beginning immediately. What kind of annuity does this represent? What factors should you consider as you make the decision to take either the annuity or a lump sum payable immediately? Give at least 5 reasons for each alternative.
Your friend just won the lottery. He has a choice of receiving $50,000 a year for...
Your friend just won the lottery. He has a choice of receiving $50,000 a year for the next 20 years or a lump sum today. The lottery uses a 15% discount rate. What would be the lump sum your friend would receive? I know the answer is 312,966.57, however, I don't know why my calculator cannot get this number.
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
Your friend just won the lottery. He has a choice of receiving $122,788 a year for the next 18 years or a lump sum today. The lottery uses a 8% discount rate. What would be the lump sum your friend would receive?
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
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