How much would you have been prepared to bid for the prize

Assignment Help Other Subject

Reference no: EM133381961

Lottery Prize Discussion Question

Several years ago, the Wall Street Journal reported that the winner of the Massachusetts State Lottery prize had the misfortune of being both bankrupt and in prison for fraud. The balance of the prize was $9,420,713, to be paid in 19 equal annual installments (there were 20 installments, but the winner had already received the first payment). The bankruptcy court judge ruled that the prize should be sold off to the highest bidder and the proceeds were to be paid to the creditors.

If the interest rate was 8%, how much would you have been prepared to bid for the prize? Explain your reasoning.
Enhance Reinsurance Company was reported to have offered $4.2 million. Find the return that the company was looking for.

Reference no: EM133381961

Questions Cloud

Consider the videogame industry at the time of the case : Consider the videogame industry at the time of the case (early 2000s). Would Nintendo be able to reclaim market share with the revolutionary product described

What are the dangers of such a coping mechanism : who we really are, or can they obscure our identities? We talk approvingly of someone's passions, but can they can also 'take us over', destroy us

Elaborate on various challenges and ethical considerations : Elaborate on the various challenges and ethical considerations that can affect how experimental and quasi-experimental research study are conducted

Capture performance related to the organization strategic : Capture performance related to the organization's strategic priorities including results, as well as competencies of employee safety and well-being.

How much would you have been prepared to bid for the prize : If the interest rate was 8%, how much would you have been prepared to bid for the prize? Explain your reasoning. Enhance Reinsurance Company was reported

Discuss a particular bahai teaching or idea in terms : Discuss a particular Bahai teaching or idea in terms of Baha'i writings. To access many Baha'i scriptural writings, you can check one of the two sites

Identify 5 macro-trends that are affecting the u. s. health : Identify 5 macro-trends that are affecting the U. S. health sector. Describe the trends and how they are, or may, disrupt current approaches to U.S. health

What creative options could carrier use to reduce : Read the case "Carrier Corporation: Montluel, France: The Aquasnap Design Project" What creative options could Carrier use to reduce the uncertainties before

What process you would use to combine online research : Describe what process you would use to combine online research with paper-based sources of information?

User Account

All Pages