Congratulations Youve won the state lottery You have a choice of three options (a) $12 million 5 years from now, (b) $2 15 million at the end of each year for 5 years, (c) $7 million today, (d) $10 million 3 years from now Assuming you can invest at 8 percent, which option would you prefer ...

Option C would be the best option as it would provide the most money immediate ...

Congratulations. Youve won the state lottery. You have a choice of three options: (a) $12 million 5

Question:

Congratulations. You’ve won the state lottery. You have a choice of three options:

(a) $12 million 5 years from now,

(b) $2.15 million at the end of each year for 5 years,

(d) $10 million 3 years from now.

Assuming you can invest at 8 percent, which option would you prefer?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Information Systems

ISBN: 9781260571080

3rd International Edition

Authors: Vernon Richardson

See More Books

Question Posted: Nov 28, 2022 02:59 AM

See More Questions

You have just won the state lottery and have two choices for collecting your winnings. You can collect $50,000 today or receive $10,100 per year for the next seven years. A financial analyst has told...
You have just won the state lottery and have two choices for collecting your winnings. You can collect $100,000 today or receive $20,000 at the end of each year for the next seven years. A financial...
A person deposits $1000 at the end of each year into an annuity earning 5% interest compounded annually? How many years are required for the balance to reach $30,539? After how many years will the...
Sandra, a sole proprietor, is an interior designer and has thefollowing account balances on December 31, 20X0: Cash $2,500,Inventory $9,000, Equipment $25,000, Accumulated depreciation$5,000, Liabi 2...
Greg Company agreed to pay Ms. Bilko $45,000 compensation for services performed for the company. a. Compare the income tax consequences to Greg and Ms. Bilko if she is an employee or if she is an...
Compute the 2015 standard deduction for the following taxpayers. a. Margie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part-time job....
E 22-1 Multiple choice 1. Contributions that are restricted by a donor to a nongovernmental not-for-profit organization are reported as a part of: a Permanently restricted net assets b Temporarily...
An object with mass 0.200 kg is acted on by an elastic restoring force with force constant 10.0 N/m. (a) Graph elastic potential energy U as a function of displacement x over a range of x from -...
Waterway's Courier Service recorded a loss of $ 9 7 0 0 when it sold a van that originally cost $ 8 4 5 0 0 for 1 5 0 0 0 . Accumulated depreciation on the van must have been $ 7 4 8 0 0 . $ 5 9 8 0...
A subdivision of the humanitarian organization, doctors without borders, based in Paris has 246 personnel in its database according to the table below. This database gives in alphabetical order the...
If an IT project costs $150,000 and returns net cash flows of $100,000 per year, what is the payback period? a. 1 year b. 1.5 years c. 2 years d. 2.5 years e. None of the above
Which of the following is not a category of IT initiative risk? a. Alignment b. Technological c. Financial misstatement d. Solution e. All of the above are examples of IT initiative risk.
Required 1. Prepare a sales journal like that in Exhibit 7.5 and a cash receipts journal like that in Exhibit 7.7. Num ber both journals as page 3. Then review the transactions of Acorn Industries...
A parent acquires all of the stock of a subsidiary for $40 million in cash. The subsidiarys books report the following account balances at the date of acquisition (in trial balance format)....
1. Given: The sign for the Inn of the Prancing Pony in Bree-yes, it comes in pints-is fixed on the end of a beam of length 5L. If the sigh deflects too much then Gandalf will hit his head when he...
Q21) Add positive and negative charges as shown in the diagram below. Use the arrows of the simulation to guide you in drawing continuous electric field lines around and in between the three charges....
When 10.1 g CaO is dropped into a styrofoam coffee cup containing 157 g H2O at 18.0C, the temperature rises to 35.8C. Calculate the enthalpy change of the following reaction in kJ/mol CaO. Assume...
4-12. Sometimes heterogeneous chemical reactions take place at the walls of tubes in which reactive mixtures are flowing. If species A is being consumed at a tube wall because of a chemical reaction,...
The patent for Uncle Jimmie's Toy Blocks has recently expired. Its design method included an array of tiny cylindrical studs on each block's top surface that interlock with precision-fitted...
What is your assessment of the negotiations process, given what you have studied? What are your recommendations for Mr. Reed? You must justify your conclusions
Refer to the association marked with the number 1 in the preceding diagram. Which of the following is the best description of the association? a. Each purchase involves one supplier. b. Each purchase...
Refer to the association marked with the number 6 in the preceding diagram. Which of the following is the best way to implement the association in a relational database? a. Post the primary key of...
Refer to the association marked with the number 5 in the preceding diagram. Which of the following is the best description of the association? a. Each inventory item is associated with a minimum of...
Suppose I have computed the cost of carbon per mile for my car at 0 . 0 1 2 per mile. Assume that the interest rate is 4 % and that I drive the car 2 8 , 0 0 0 miles per year. What is the present...
Imagine that in stable growth period, the firm earns ROIC of 10% and has after tax EBIT of 200 and reinvestment $ of 40. What is the steady state growth rate? 20% O 10% 2%
Tanner-UNF Corporation acquired as a long-term investment $160 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until...

Congratulations. Youve won the state lottery. You have a choice of three options: (a) $12 million 5

Question:

Step by Step Answer:

Option C would be the best option as it would provide the most money immediate...View the full answer

Accounting Information Systems

Students also viewed these Business questions