What is the present value of cash flows for state lottery

Assignment Help Financial Accounting
Reference no: EM132775885

Problem 1: The state lottery's million-dollar payout provides for $1.5 million to be paid in 25 installments of $60,000 per payment. The first $60,000 payment is made immediately, and the 24 remaining $60,000 payments occur at the end of each of the next 24 years. If 8 percent is the discount rate, what is the present value of this stream of cash flows? If 16 percent is the discount rate, what is the present value of the cash flows?

Reference no: EM132775885

Questions Cloud

Find net realizable value and loss on inventory writedown : P5 per pack for repairing and reapplying glue to the envelopes. The net realizable value and loss on inventory writedown respectively amount to
Calculate the projects payback period : Calculate the projects payback period and discounted payback period at a rate of 14%.
What is present value of investment a at an annual discount : You are given three investment alternatives to analyze. What is the present value of investment A at an annual discount rate of 12 ?percent?
Calculate the monthly payments : Calculate the monthly payments for? him, assuming both loans use the simple interest calculation method.
What is the present value of cash flows for state lottery : The state lottery's million-dollar payout provides for $1.5 million, If 16 percent is the discount rate, what is the present value of the cash flows?
Find cd interest earnings : Antonio would like to replace his golf clubs with a custom measured set. A local sporting goods megastore is advertising custom clubs for ?$660?, including a ne
Calculate the loan payments : Also calculate the loan payments assuming rates of 6.25 percent and 8.25 percent. Compare the total amount spent on the vehicle under each assumption.
Calculate the net present value for big pharmaceuticals ltd : BIG Pharmaceuticals Ltd, Calculate the internal rate of return for the product. Cash flow statement for the product for the next 5 years
Determine how much must deposit in an account today : Determine How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the equivalent cash price of the car

What is the equivalent cash price of the car? Polly purchased a car. She paid ?150,000 as down payment, and ?5,500 payable at the beginning of each month

  Berkshire inc. uses a periodic inventory system

Berkshire Inc. uses a periodic inventory system. At the end of 2012, it missed counting some inventory items, resulting in an inventory understatement by $600,000. Assume that Berkshire has a 30% income tax rate and that this was the only erro..

  Credit vacation benefits payable

Debit Vacation Benefits Expense $16,835; credit Vacation Benefits Payable $16,835-Debit Vacation Benefits Expense $15,500; credit Vacation Benefits Payable $15,500.

  Are the convertible preferred shares potentially dilutive

Are the convertible preferred shares potentially dilutive? Why or Why not? The $10 dividend on the preferred shares is cumulative, and the tax rate is 25%.

  Using process costing completed and transferred

A company using process costing completed and transferred 8,000 units of a product to finished goods. In addition to the transferred units, 4,000 additional units were in process 40% complete when the period ended. In computing average unit cost, how..

  How much was the legal capital of the corporation

Under the trust fund doctrine, what amount that should remain untouched or untouched or unimpaired for the protection or corporate creditors?

  Calculate the accounting rate of return

Discuss how sensitive your recommendations are to changes in assumptions in regards to the financial impact of the new capital investment.

  Find the new value of the firm after investment decision

Invest $640 at an average 30 per cent rate of return. Find the new value of the firm after investment decision under Two-Period Perfect Certainty Model.

  What must? lisa annual deposit? be for lisa simpson

Lisa Simpson wants to have ?$1,300,000 in 35 years by making equal annual? end-of-the-year deposits, What must? Lisa's annual deposit? be?

  Calculate mirandolina inns year four pension expense

Mirandolina Inns' management are concerned about the size of the pension fund deficit at the end of year 4. Calculate Mirandolina Inns' year 4 pension expense and end-year 4 pension liability (or asset).

  Determine the goodwill on acquisition of damai ltd

Give three condition when the functional currency of Damai Lid. is Ringgit Malaysia (RM). Determine the goodwill on acquisition of Damai Ltd.

  Calculate the balance of the investment in associate account

$50 000 during the current financial period. Calculate the balance of the investment in associate account at the end of the current financial period.

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