Present value of your windfall if appropriate discount rate

Assignment Help Financial Management

Reference no: EM13933142

You have just received notification that you have won the $2.13 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 67 years from now.

Required: What is the present value of your windfall if the appropriate discount rate is 10 percent? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $

Reference no: EM13933142

Questions Cloud

Record and post the closing entries : Prepare a multi step income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows.

Changes in bop account which will take place for transaction : A U.S. tourist travels to Germany and spends $2000 on lodging and food. He pays the hotel with a check drawn on a U.S. bank.

What was the annual percentage increase in winners check : In 1904, the first Putting Green Championship was held. The winner’s prize money was $300. In 2009, the winner’s check was $1,560,000. What was the annual percentage increase in the winner’s check over this period? If the winner’s prize increases at..

Research based on common interest : Along with your teammate (if working in team), you need to select a topic for your research based on your common interest. At this stage you are not required to be specific. However, you should at least know what the board area of your research is..

Present value of your windfall if appropriate discount rate : You have just received notification that you have won the $2.13 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 67 years from now. What is the present value..

Discussing the source and derivation of income principles : Based on this conclusion and discussing the source and derivation of income principles, state which amounts would be included in his assessable income for the year. You do not need to consider the consequences of any Double Tax Agreements.

Possible justifications for attorney-client privilege : Explain what the spousal incapacity privilege is and the rationale behind the rule. What is the marital communications privilege and what is required for the privilege to apply? What are two possible justifications for the attorney-client privilege

What is the expected return and standard deviation : What is the expected return and Standard Deviation of a $10,000 portfolio in which you expect to 5% return and a standard deviation of 20%? Assume 1% risk free rate.

Application that calculates the cost of all the supplies : Write an application that calculates the cost of all the supplies added to the user's shopping list (Fig. 22.18). The application should contain two Li stBoxes. The first contains all the supplies offered and their respective prices. Users should ..

User Account

All Pages