Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

The $14.3 million lottery payment that you just won actually pays $1.1 million per year for 13 years. If the discount rate is 12.40% and

The $14.3 million lottery payment that you just won actually pays $1.1 million per year for 13 years. If the discount rate is 12.40% and the first payment comes in 1 year. a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

1. Which of the following assessment methods provides feedback that is nonevaluative, occurs before or during instruction, and guides teachers in planning and improving instruction? A. Summative B....

Answered: 1 week ago

Question

★★★★★

Gulf Coast Shrimp Company is a small company. It owns an icehouse and processing building, a refrigerated van, and three shrimp boats. Bob Jones inherited the company from his father three months...

Answered: 1 week ago

Question

★★★★★

7 Cash Payback Period for a Service Company Jane's Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $140,000 and each with an...

Answered: 1 week ago

Question

★★★★★

Julie, a single taxpayer, has completed her 2 0 2 3 Schedule C and her net loss is $ 4 0 , 0 0 0 . Her only other income is wages of $ 3 0 , 0 0 0 . Julie takes the standard deduction of $ 1 3 , 8 5...

Answered: 1 week ago

Question

★★★★★

Parts arrive at a lathe at a rate of 20 every half hour. Each part must be processed on the lathe for 0.5 minutes. What is the utilization for the lathe?

Answered: 1 week ago

Question

★★★★★

Use Linux commands to complete the following task. a. Perform a system update using root privileges b. Create a folder in the user directory named MYFOLDER c. Create a file with the name INDEX d....

Answered: 1 week ago

Question

★★★★★

2. Suppose I have a class B ID: 189.126.0.0/24, and I want to create 6 new subnets. A.What is the new subnet mask? B.How many usable host IDs for each new subnet? C.List each network ID, the useable...

Answered: 1 week ago

Question

★★★★★

Prepare a cash budget for each of the six months ended 31 December 2021 (b) Prepare the forecast income statement for the six months ended 31 December 2021. (c) Explain THREE (3) purposes of...

Answered: 1 week ago

Question

★★★★★

Q5 24 Points Consider a finite one-period financial model with trading times {0, 1} and sample space = {w, w}. Let V1,..., V" denote securities whose payments at time 1 are given by V (wi)={ 1 i=j 0...

Answered: 1 week ago

Previous Question Next Question