Acceptable based on the information

Reference no: EM131107943

Show transcribed image text Congratulations! You have just won the Magazine Peddlers Sweepstakes! Spokesman Ferd McMoney has indicated that you have the choice of receiving $25,000 a year for the next 15 years with the first payment to be provided in one year or alternatively, $220,000 in cash. If you believe that your opportunity cost or return is 8%, based on the concept of time value, which should you choose? There is not enough information provided to answer the question based on time value of money concepts The S220,000cash payment The values are equivalent and either is acceptable based on the information The S25,000 per year for 15 years

Reference no: EM131107943

Questions Cloud

What steps could you take to address this challenge : Which role do you feel is the most important and why? Which one do you think will be the most challenging for you to implement and why? What steps could you take to address this challenge?

Increase worker mobility : Which of the following will not increase worker mobility?

Prove that two conjugate sub-groups have same order : Prove that two conjugate sub-groups have same order - what is difference b/w homomorphism and homeomorphism?

Canadian economy : Using an aggregate demand and supply model, describe the short-term impact on aggregate economic activity (price level, output, and employment) of each of the following events. Briefly explain your reasoning. [You may, if you wish, use AS/AD diagrams..

Acceptable based on the information : Show transcribed image text Congratulations! You have just won the Magazine Peddlers Sweepstakes! Spokesman Ferd McMoney has indicated that you have the choice of receiving $25,000 a year for the next 15 years with the first payment to be provided..

Using the replicating portfolio price this call : Consider a European call option written on St. the call has a strike price K = 120 and expiration of 3 months. Using St and the risk-free borrowing and lending, Bi, construct a portfolio that replicates the option. Using the replicating portfolio pri..

Expected to cause the net benefit associated with mobility : Assuming that wages in an alternative location are expected to always be higher than wages in the current location, an increase in the interest rate is expected to cause the net benefit associated with mobility to:

How many periods must a company present eps data : For how many periods must a company present EPS data?

Who were the last three suspects to be tried : Kenya had a political turmoil over the last eight years. there was the post election violence that left more than a thousand citizens dead and dozen others lost their homes and were forced to flee. who were the last three suspects to be tried

User Account

All Pages