User Account

All Pages

Should still accept the lump-sum offer

Assignment Help Financial Accounting
Reference no: EM132931247

As a settlement in an automobile injury lawsuit, Robyn will receive $30000 each year for the next 25 years, for a total of $750000. The insurance company is offering a one-payment settlement of $300000, now.

Problem a. Should she accept the one-payment settlement of $300,000? Assuming that the money can be invested at 9% annual interest. Why?

Problem b. If Robyn could invest the settlement at 8% interest, should she still accept the lump-sum offer? Why?

Reference no: EM132931247

Questions Cloud

Create simulated networks : A technique called ERGM can use a few simple rules to create simulated networks that more closely resemble actual (observed) social networks than do random netw
Find what periodic deposits to sinking fund paying quarterly : Find what periodic deposits to a sinking fund paying quarterly interest at a 8% annual rate will achieve that goal? A company will need $50,000 in 8 years.
Find what the current intrinsic value of the bond should be : Matures in 23 years, has a coupon rate of 8.11% per annum, and has a yield to maturity of 19.50% per annum. The current intrinsic value of the bond should be
Determine single deposit now that provide same retirement : Determine the single deposit now that will provide the same retirement benefit. Determine the total amount of his contributions.
Should still accept the lump-sum offer : As a settlement in an automobile injury lawsuit, If Robyn could invest the settlement at 8% interest, should she still accept the lump-sum offer? Why?
Find the total of their payments over the full term : Find the total of their payments over the full term. A family takes a 15-year mortgage of $200000 for their new home, at 6.8% compounded monthly.
Prepare how transactions should be recorded in the books : Prepare journal entries to show how the above transactions should be recorded in the books of Exchanger Limited for the year ended 31 December 2019.
Demonstrate accounting entry required to record transaction : Demonstrate, with appropriate calculations, the accounting entries required to record the transaction above for year ended 31 March 2020.
Provide examples of firms listed in bursa : The shareholders have diverse views when it comes to holding shares of a company. Provide examples of firms listed in Bursa and support your argument with data.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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