User Account

All Pages

Difference between the present values of the two options

Assignment Help Business Management
Reference no: EM131702653

You won a $50 million dollar state lottery today! Upon winning, you were informed that you could choose to receive the prize money in one of the following two ways:

1) 25 payments of $2 million per year starting today

2) $30 million dollars paid today

Assume the market interest rate at this time is 7%. Which option should you take? In other words, which option has the higher total present value? What is the difference between the present values of the two options?

Reference no: EM131702653

Questions Cloud

Determine the affirmative action plan is justified : How will the court rule on his challenge? What is the proper comparison to determine whether the affirmative action plan is justified?
What impact will the cost of the purchase : a. What impact will the cost of the purchase have on earnings for each of the next 5
Perform impairment test and make any necessary journal entry : Wahoo's initial cost of Haddock's net assets was $1,400,000 with $300,000 attributed to goodwill. Perform impairment test and make any necessary journal entry
Discuss about international power relations : The things that are usually forgotten is the underdevelopment which is rooted not only in international power relations, but also in the power relations
Difference between the present values of the two options : In other words, which option has the higher total present value? What is the difference between the present values of the two options?
Can the girls club articulate a bonafide business reason : Can you suggest a theory under which Chambers could challenge her discharge based on race discrimination? Can the Girls Club articulate a bonafide business.
Explain the differences between push and pull systems : escribe the meaning of waste in JIT? Explain the differences between "push" and "pull" systems ?
What is the project npv : The tax rate is 34 percent and the required return on the project is 10 percent. What is the project's NPV?
How was anthropology evolved over the past century : How was anthropology evolved over the past century, What contributions can anthropology provide to aboriginal people today

Reviews

Write a Review

Business Management Questions & Answers

  Learning about security policies and implantation

We have now spent several weeks learning about security policies and implantation. Discuss the importance of having security policies in place. Be sure to provide thorough, detailed and well supported answers.

  Primary outcomes of human resource management

Pollitt, David. (2005). E-recruitment gets the Nike tick of approval: System frees HR staff to perform more consultancy. Human Resource Management International Digest, Volume 13, Issue 2, pp. 33-35.

  What was the sales for the 2nd month

Q1: What were the purchases ($) for the 1st month?

  What are the differing views on the social responsibility

Mathis, Inc. is a designer and manufacturer of women's clothing and specializes in high-end women's winter fashions. Normandale, a retailer, sells high-end products in malls throughout the country. With Mathis's high costs, Normandale is unable to..

  Explain options for solving the problem in the scenario.

Explain the options for solving the problem in the scenario. Evaluate the options for solving the problem. Decide on the best option for solving the problem.

  Global ventures have gone smoothly

Censorship, enforced written and unwritten laws, red tape and language hurdles not to mention having and keeping the rights to your own patents and products. Give examples of 2 U.S companies who may have faced some or all of these issues. Give exam..

  Discuss the project closeout process

How customer final approval will be received. Criteria to be met for the customer to agree that the project is successfully completed.

  Helped or hurt most businesses

Do you think online options have helped or hurt most businesses? A store does not have to be in every physical location to win customers.

  Calculate the average probability of symbol error

Calculate the average probability of symbol error incurred by this receiver for E/N0 = 4, where E is the signal energy.

  Describe specific practices that successful project managers

Evaluate Judy Stokleys level of success in developing a culture of trust while implementing her drawdown planas Eglin Air Bases new Advanced Medium Range Air-to-Air Missile (AMRAAM) program director. Provide three (3) specific examples to support ..

  Need help on strategic planning

Strategic planning is essential in the sustainability of all healthcare organizations. Outline the processes, or steps, involved in the strategic planning process and continual monitoring of the internal and external environment. Provide a substan..

  List three positive and unique aspects of intercultural

list three positive and unique aspects of intercultural relationships.list three reasons why people are hesitant to

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