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

Question

1 Approved Answer

You just won the Publisher's Clearing House Sweepstakes and the right to 20 after-tax ordinary annuity cash flows of $163,291.18. Assuming a discount rate of

You just won the Publisher's Clearing House Sweepstakes and the right to 20 after-tax ordinary annuity cash flows of $163,291.18. Assuming a discount rate of 7.50%, what is the present value of your lottery winnings? Use a calculator to determine your answer.

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_2

Step: 3

blur-text-image_3

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

Fundamentals of Investments, Valuation and Management

Fundamentals of Investments, Valuation and Management

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

8th edition

1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697

More Books

Students also viewed these Finance questions

Question

★★★★★
Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store...

Answered: 1 week ago

Question

★★★★★
Maloney Company borrowed $60,000 on a two-year, 8% note dated October 1, 2011. Interest is payable annually on October 1, 2012, and October 1, 2013, the maturity date of the note. The company...

Answered: 1 week ago

Question

★★★★★
=+a) Student ratings of an instructor on a 5 point Likert scale.

Answered: 1 week ago

Question

★★★★★
On July 1, 2015, Ashlock Chemical Company issued $4,000,000, 10%, 10 year bonds at $4,543,627. This price resulted in an 8% effective-interest rate on the bonds. Ashlock uses the effective-interest...

Answered: 1 week ago

Question

★★★★★
The attractive energy E A and repulsive energy E R for a Na+ and Cl ion pair depends on the distance r between the ions, and is given by the following relation: and For these relationships, the...

Answered: 1 week ago

Question

★★★★★
You are the cost accounting manager for Dave's Seafood Restaurant. You have just received word that, due to the COVID 19 Virus,you must suspend all operations except take out. Youoperate in one...

Answered: 1 week ago

Question

★★★★★
Paco, Inc. is considering obtaining funding through advances against receivables. The total annual credit sales are $1,200,000, the terms are net/30 days, and the payment is made on the average of 30...

Answered: 1 week ago

Question

★★★★★
Question 6: Given the data below, what is the simple linear regression model that can be used to predict sales in future weeks? You have the following regression equation: Yt = 143.5 + 6.3x

Answered: 1 week ago

Question

★★★★★
1. What is P(A=a2,B=b2) P(A=a2,B=b2)? 2. Observing events from this probability distribution, what is the probability of seeing (a1, b1) then (a2, b2)? 3. Calculate the marginal probability...

Answered: 1 week ago

Question

★★★★★
1. According to Kant, what are the benefits to the individual in exercising their reason? What are the benefits to society? 2. How might this understanding of the "freedom of reason" have been seen...

Answered: 1 week ago

Question

★★★★★
create a practice research question for which the collection of observational data will be appropriate. What are three observations you might make when conducting this research? How will these...

Answered: 1 week ago

Question

★★★★★
001 (part1of6) 10.0points 003 (part3of6) 10.0points An electron is initially at rest. At time t1 = 0, At what time to does the electric field at it is accelerated upward with an acceleration location...

Answered: 1 week ago

Question

★★★★★
(Error Analysis) The before-tax income for Lonnie Holdiman Co. for 2007 was $101,000 and $77,400 for 2008. However, the accountant noted that the following errors had been made: 1. Sales for 2007...

Answered: 1 week ago

Question

★★★★★
(Error Analysis) When the records of Debra Hanson Corporation were reviewed at the close of 2008, the errors listed below were discovered. For each item indicate by a check mark in the appropriate...

Answered: 1 week ago

Question

★★★★★
(Change from Fair Value to Equity) On January 1, 2007, Barbra Streisand Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value...

Answered: 1 week ago

Previous Question Next Question