Decision influence ultimate amount of cash you will collect

Assignment Help Financial Management
Reference no: EM13980935

It is a common fact that many lottery winners are “broke” sooner than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time? How does your decision influence the ultimate amount of cash you will collect? Explain the TVM factors you would consider as you make this decision. 

Reference no: EM13980935

Questions Cloud

For each of the algebra problems : For each of the algebra problems below, round your answer to 2 decimal places and record your answer on D2L without (if applicable) a comma. Thus, enter 3.24765 as 3.25 or .18763 as 0.19 or 3,214.842876 as 3214.85.
Calculate the appropriate price : Calculate the appropriate price at which this investor can contract to sell the asset in one year.
Calculate the cost of giving up this discount to atlantic : Atlantic Company buys merchandise from their suppliers on credit. They must pay the total amount due within 50 days of purchase. However, if the pay their bill within 12 days the would be able to take a discount of 4% off of the total purchase price...
Annual interest payment on the second issue : Both issues pay interest annually. What is the annual interest payment on the second issue?
Decision influence ultimate amount of cash you will collect : It is a common fact that many lottery winners are “broke” sooner than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time? How does your decision influence the ultimate amount ..
Describe the main characters in the observed movie : Mention the name of the movie. Describe the setting and overall storyline of the movie. Describe the main characters in the observed movie section
What is the pv of this promise : You have been promised $1,000 by Joe Shmoe in 1 year. Shmoe investments has a market-beta of 2. If the expected rate of return on the market is 6% and the expected rate of return on risk-free bonds is 3%, what is the PV of this promise?
Describe his style of visionary/transformational leadership : Are there lessons from the case based on the movie Invictus about what institutions and organizations seeking to foster transformational and visionary leaders should avoid? Be specific
What were dividends per share paid by the firm : The year-end 2014 balance sheet for Brad’s Copy, Inc. lists common stock ($1.25 par value) at $7,626,000 capital surplus at $86,543,126 and retained earnings at $218,546,280. On the 2012 year-end balance sheet, retained earnings is listed as $214,368..

Reviews

Write a Review

Financial Management Questions & Answers

  What will be the market price of these bonds

What is the par value today and what will it be three years from today -  Write down the current prime rate, 15-year mortgage rate, the 3 month T-Bill rate and the 5-year T-Bond rate (for the USA). Are you surprised?

  Tax-deferred individual retirement arrangement

Retirement planning Hal Thomas, a 25-year-old college graduate, wishes to retire at age 65. To supplement other sources of retirement income, he can deposit $2,000 each year into a tax-deferred individual retirement arrangement (IRA).

  What is the current stock price

Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $.80 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1 percent, forever. The appropriate rate of return on the stock is 10..

  A bond that pays interest annually yields rate of return

A bond that pays interest annually yields a rate of return of 5.75 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?

  Which loan has the lowest annual cost

Last national bank is offering you a loan at 10%; payments on the loan are to be made monthly. Credit Onion is offering you a loan where payments are to be made semi-annually; the rate on the loan is also 10%. A local bank down the street is also off..

  What is the expected present value of growth opportunities

Suppose that a firm's common equity is selling for $150 in the market, that the firm has $115 million in Net Income, and the firm has 20 million common shares outstanding. Finally, the firm faces a moderately high cost of common equity of 14%. What i..

  Purchase equipment by issuing new securities

The Fried Green Tomato Restaurant increased its operating cycle from 140 days to 148 days while the cash cycle decreased by 3 days. How have these changes affected the accounts payable period? Quali Tech wants to raise $21 million to purchase equipme..

  Compute the internal rate of return on both projects

Compute the internal rate of return on both projects. Compute the profitability index of both projects. Compute the payback period on both projects.

  How much should you willing to pay to purchase one share

Last month, Town Deli paid an annual dividend of $3.75 per share. The general consensus is that dividends will increase by 3.5% annually and you require a 15% annual rate of return, how much should you willing to pay to purchase one share of this sto..

  What effect the free trade agreement of the americas

Does any currency exchange rate risk exist and what is a tariff? How is it implemented and collected?

  What is the sustainable rate of growth

Little Miss Matched has a 6.4% after-tax profit margin and a 20% dividend payout ratio. The debt-equity ratio is 0.65 and the total asset turnover is 1.8. What is the sustainable rate of growth?

  What is difference between the expected return on equity

Southwest physicians a medical group practice in Oklahoma City are just being formed. it will need $2 million of total assets to generate $3 million in revenues. Furthermore the group expects to have a total margin of 5 percent. The group is consider..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd