User Account

All Pages

Determining the present value

Assignment Help Business Management
Reference no: EM133025272

Problem:

The good news is you've just won the lottery. The bad news is there are 3 different pay-out options . . . you need to choose the option with the greatest present value:

Option 1: An immediate lump sum of $200,000;

Option 2: $1,250 per month to be received at the end of this month and every month thereafter for 40 years in total

Option 3: $15,000 to be received one year from now and every year thereafter . . . forever

What is the present value of each option AND which option do you choose. In choosing the best option assume that your annual discount rate is 8%

Reference no: EM133025272

Questions Cloud

Explain main causes of situations : Ptroblem: Reflect on two situations from your past when you demonstrated managerial incompetence or managerial derailment.
Bargaining power of buyers : The threat of the bargaining power of buyers is high. The biggest buyers are Microsoft (28%), Sony (21%). This buyer group is concentrated and accounts for
Google business structures : Please look into many different google business structures such as youtube please answer these questions
Diagram the existing process : JSM Manufacturing is a small, local company that manufactures personal protective equipment, such as surgical masks, gowns, and face shields. The company relies
Determining the present value : Option 2: $1,250 per month to be received at the end of this month and every month thereafter for 40 years in total
Establish the revenues of the new safari tour business : Design and submit a research project rough draft of the financial plan for a new safari tour business? This new Safari Tour Business is a new up
SOC 105 Social and Cultural Norms Assignment : SOC 105 Society and the Media Assignment - Social and Cultural Norms, Strayer University, USA - Organize arguments and support your claims effectively
Leighton holdings case study : Question 1: What areas of law are pertinent to the Leighton Holdings case study? Describe what the identified areas of law cover and explain how they are releva
What are some of the fundamentals in risk management : How does your definition align with the term in security management? What are some of the fundamentals in risk management

Reviews

Write a Review

Business Management Questions & Answers

  Describe what a common stock yield is

Describe what a common stock yield is and why it is important for an investor. Describe and explain the importance of a bond yield also

  Benefits that will be achieved through this goal

What is your primary goal regarding your Ashworth College education? Describe three (3) benefits that will be achieved through this goal.

  Development of the operational plan

What budgeting factors would you need to consider and include in the development of the operational plan? List five (5) of these factors.

  Question about sustainability1 large business leaders are

question about sustainability1. large business leaders are accountable to the government their shareholders and their

  Involved triangulation of data

Locate a research article describing a case study that involved triangulation of data. Critique the use of triangulation.

  Why are prices awesome

Why are prices awesome? What relationship do prices have to the consumer and producer problems, and how do prices serve as the "glue" that connects that two problems and brings about what economists call equilibrium?

  Unintended consequences of some of government

Write a paper about unintended consequences of some of government's "fixes" for unemployment. To achieve maximum points for content and analysis, the following elements need thoroughly addressed:

  Changes to external business environment

Why is it important for companies to continually adjust/change the organizational structure based on changes to the external business environment?

  What are the components of an operations strategy

1.What are the components of an operations strategy in a strategic business plan?

  Change management-power and influence

These questions are designed to help you maximize learning from the simulation experience. Although your responses can be brief, please demonstrate that you were actively engaged in and reflected on the concepts illustrated in the simulation. Full..

  Why might relative wages for efts be higher in foreign

Why might relative wages for efts be higher in Foreign? Explain using relative supply and relative demand of efts to newts.

  Main sectors of the financial services industry

List at least three of the main sectors of the financial services industry that may impact your role as a finance broker.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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