FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have just won the lottery and will receive $630,000 in one year. You will receive payments for 19 years, and the payments will increase

You have just won the lottery and will receive $630,000 in one year. You will receive payments for 19 years, and the payments will increase 4 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings?

Multiple Choice

$22,027,420

$22,027,420

$6,389,406

$86,737

$6,133,830

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Advanced Bond Portfolio Management

Advanced Bond Portfolio Management

Authors: Frank J. Fabozzi, Lionel Martellini, Philippe Priaulet

1st Edition

0471678902, 9780471678908

More Books

Students also viewed these Finance questions

Question

★★★★★
In the United States, 44% of the population has type O blood. Suppose a random sample of 12 persons is taken. Find the probability that 6 of the persons will have type O blood (and 6 will not) (a)...

Answered: 1 week ago

Question

★★★★★
=+11.3. Show that Theorem 11.4(ii) can fail if u(B) =00.

Answered: 1 week ago

Question

★★★★★
The Belik Company has the capacity to produce 5,000 units per year. Its predicted operations for the year are as follows: Sales (4,000 units @ $ 20 each) ......... $ 80,000 Manufacturing costs:...

Answered: 1 week ago

Question

★★★★★
Assume that your company reports net operating working capital of $123,800, long-term operating assets of $365,700, long-term operating liabilities of $211,900, and net nonoperating obligations of...

Answered: 1 week ago

Question

★★★★★
On a bank reconciliation, checks issued during the period that were not presented to the bank for payment before the bank statement was prepared are known as a. dishonored checks. b. outstanding...

Answered: 1 week ago

Question

★★★★★
Wasteful usage of variable overhead costs such as indirect materials and utilitiesi.e., misplacing or spilling indirect materials or leaving machines running and doors to refrigerated areas open will...

Answered: 1 week ago

Question

★★★★★
The intName method in the "Problem Solving: Stepwise Refinement"section accepted arguments Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
CHALLENGE ACTIVITY 3.6.2: Ranges with gaps. Jump to level 1 Given integer ordered Cherries, output: "Small carton", if there are 20-50 cherries inclusive. "Medium carton', if there are 80-100...

Answered: 1 week ago

Question

★★★★★
Fill in the blank: The second slide of a presentation should include a statement of _____, such as: "The aim of this project was to determine the impact of reduced orders on inventory availability."...

Answered: 1 week ago

Question

★★★★★
What is the importance of Psychographics factors in consumer analysis?

Answered: 1 week ago

Question

★★★★★
4.5 Explain the difference between ajob description and ajob specification.

Answered: 1 week ago

Question

★★★★★
5. In what ways maythe transfer of some HR functions to work group supervisors improve the efficiency of the HR division? In what ways may work group supervisors be advantaged or disadvantaged by the...

Answered: 1 week ago

Question

★★★★★
2. Why have the HR and training divisions built quite different database systems? What are the difficulties involved in integrating the functions of these divisions? Jack Newman had recently been...

Answered: 1 week ago

Previous Question Next Question