Assuming the effective rate of interst is 12 and using the

Assignment Help Accounting Basics

Reference no: EM13595684

Assume that you have won the Publishers Clearing House Sweepsteaks. When you are contacted about your winnings, you are offered the following three payout options:

a. Receive $10,000,000 in cash today.

b. Receive $2,200,000 today and $1,050,000 per year for 15 years, with the first $1,050,000 payment being received one year from today.

c. Receive $1,200,000 per year for 15 years, with the first payment being received one year from today.

Assuming the effective rate of interst is 12% and using the present value concepts presented, which option should you select? Explain your answer and give supportion calculations.

Reference no: EM13595684

Questions Cloud

Assuming that the henrys law constant for co2 in the drink : the partial pressure of co2 gas about the liquid in a carbonated drink is 6.2. assuming that the henrys law constant

Write down all species including states that are present in : write down all species including states that are present in signicant amounts when the following solids are added to

A solution is prepared by adding 250 ml of 130 m alcl3 : question a solution is prepared by adding 25.0 ml of 1.30 m alcl3 solution to a flask and then adding enough water to

A physical count on may 31 2010 shows 2000 units of part mo : zimmerman corp. had 1500 units of part m.o. on hand may 1 2010 costing 21 each. purchases of part m.o. during may were

Assuming the effective rate of interst is 12 and using the : assume that you have won the publishers clearing house sweepsteaks. when you are contacted about your winnings you are

Calculate the boiling point in degrees c of a solution : calculate the boiling point in degrees c of a solution made by dissolving 2.87 g of sucrose in 29.6 g of water. the kbp

One of wpcs sales representatives receives a special offer : wpc has excess production capacity and is considering the possibility of making and selling paging equipment. the

Sulfur reacts with oxygen to produce sulfur dioxide but : sulfur reacts with oxygen to produce sulfur dioxide but only if the high activation energy is supplied. which condition

Does the oxidation of free fadh2 by ubiquinone under the : does the oxidation of free fadh2 by ubiquinone under the standard biochemical conditions provide sufficient free energy

User Account

All Pages