1. As a winner of a given competition, you can choose one of the following prices: a. $100,000 now b. $180,000 at the en...
1. As a winner of a given competition, you can choose one of the following prices:
a. $100,000 now
b. $180,000 at the end of 5 years
c. $11,400 a year forever
d. $19,000 for each of ten years
e. $6500 next year and increasing thereafter by 3% forever.
If the interest rate is 10%, which is the most valuable prize?
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1. As a winner of a given competition, you can choose one of the following prices: a. $100,000 now b. $180,000 at the en...
You just won the lottery! You can elect to receive your prize in one of four...
You just won the lottery! You can elect to receive your prize in one of four ways: a) $1,000,000 now b) $1,400,000 at the end of five years e) $75,000 per year in perpetuity, with payments made at the end of each year (so your first payment comes one year from today) d) $150,000 per year for the next ten years, with payments made at the end of each year (so your first payment comes one year from today) Suppose...
A lottery winner will receive $1 million at the end of each of the next ten...
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1) Investment X for 100,000 is invested at a nominal rate of interest, j, convertible semi-annually....
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Please choose one answer A,B,C, or D thank you A bank is negotiating a loan. The...
Please choose one answer A,B,C, or D thank you
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 8%, what annual payments should be made so that both forms of payment are equivalent? OA. $17,046 OB. $23,864 OC. $13,637 OD, $27,274
5. Your inheritance will pay you $100,000 a year for five years beginning now. You can...
5. Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a CD that will pay 7.75 percent annually. What is the present value of your inheritance? (Round to the nearest dollar.) A) $399,356 B) $401,916 C) $433,064 D) $467,812 6. Your father is 60 years old and wants to set up a cash flow stream that would be forever He would like to receive $20,000 every year, beginning at the end...
You have just won the lottery and you can choose between the following payout options. The...
You have just won the lottery and you can choose between the following payout options. The annual interest rate (EAR) is 10%. a) $100,000 right now and $60,000 every two years starting 3 years from now and ending 17 years from now (i.e., payments are at t = 0, t = 3, t = 5, … , t = 15, t = 17). b) $60,000 a year for 25 years with the first payment one year from today (i.e., payments...
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: $100,000 a year at the end of the next 10 years, with the first payment one year from today. Option C: Twenty annual...
(1)Your firm has identified three potential investment projects. The projects and their cash flows are shown...
(1)Your firm has identified three potential investment projects. The projects and their cash flows are shown here (Project Cash Flow Today ($) Cash Flow in One Year ($)) A -10- 20 B 5 -5 C 20 -10 Suppose all cash flows are certain and the risk-free interest rate is 10%. a. What is the NPV of each project? b. If the firm can choose only one of these projects, which should it choose? c. If the firm can choose any...
The situation You have $1000 saved. Now, you need to figure out w money in. You can choose from t...
Pls. show solutions.
The situation You have $1000 saved. Now, you need to figure out w money in. You can choose from the following two banks hich bank you want to inuest your NATIONAL BANK Standard Bank You will be given $65 at the end of every year. Your account earns 6% annual interest. . Create a table for each of your options: Standard Bank YearBalance NATIONAL BANK Account Account Balance Vear Round to nearest cent! 2. Write an equation...
SHOW ALL WORK. Preferred if you showed how to do it on both financial calculator and...
SHOW ALL WORK. Preferred if you showed how to do it on both financial calculator and by hand. 1. A zero-coupon bond has a face value of $21,000 and a maturity of 8 years. Similar bonds have an interest rate of 5% per year. What is the price of this bond? A. $2625 B. $14214 C $20870 D $8400 2. At the beginning of the year, an analyst forecasts that the earnings of Gyronetics Corp. will be $120 per share...
You just won the lottery! You can elect to receive your prize in one of four ways: a) $1,000,000 now b) $1,400,000 at the end of five years e) $75,000 per year in perpetuity, with payments made at the end of each year (so your first payment comes one year from today) d) $150,000 per year for the next ten years, with payments made at the end of each year (so your first payment comes one year from today) Suppose...
Please choose one answer A,B,C, or D thank you
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 8%, what annual payments should be made so that both forms of payment are equivalent? OA. $17,046 OB. $23,864 OC. $13,637 OD, $27,274
5. Your inheritance will pay you $100,000 a year for five years beginning now. You can invest it in a CD that will pay 7.75 percent annually. What is the present value of your inheritance? (Round to the nearest dollar.) A) $399,356 B) $401,916 C) $433,064 D) $467,812 6. Your father is 60 years old and wants to set up a cash flow stream that would be forever He would like to receive $20,000 every year, beginning at the end...
Pls. show solutions.
The situation You have $1000 saved. Now, you need to figure out w money in. You can choose from the following two banks hich bank you want to inuest your NATIONAL BANK Standard Bank You will be given $65 at the end of every year. Your account earns 6% annual interest. . Create a table for each of your options: Standard Bank YearBalance NATIONAL BANK Account Account Balance Vear Round to nearest cent! 2. Write an equation...
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