The price is right, Much to your surprise, you were

The price is right

Assignment Help Financial Management

Reference no: EM131461002

Much to your surprise, you were selected to appear on the TV show? "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the following:

$2,000 today, $7,000 in 14 years, or $25,000 in 24 years. Assuming that you can earn 11 percent on your money, which should you choose?

If you are offered $7,000 in 14 years and you can earn 11 percent on your money, what is the present value of $7,000 ?(Round to the nearest cent.)

If you are offered $25,000 in 24 years and you can earn 11 percent on your money, what is the present value of $25,000 (Round to the nearest cent.)

Which offer should you choose? (Select the best choice below.)

A. Choose $25,000.00 in 24 years because its present value is the highest.

B. Choose $2,000.00 today because its present value is the highest.

C. Choose $7,000.00 in 14 years because its present value is the highest.

Reference no: EM131461002

Questions Cloud

Find the z-score that corresponds : For the standard normal distribution, find the z-score that corresponds to the 90th percentile.

Define a normal distribution for the analysis : A car manufacturer is trying to develop a new sports car. Engineers are hoping that the average amount of time that the car takes to go from 0 to 60 miles.

Analyze current or emerging issue in educational technology : analyze a current or emerging issue in educational technology. Choose an issue from one of the websites listed in the Week Four Resources document.

Differentiate the p-value and the critical value approach : A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He studies the following sample APR quotes.

The price is right : Much to your surprise, you were selected to appear on the TV show "The Price is Right."

What is market rate of return on this stock : The common stock of Auto Deliveries sells for $25.96 a share. What is the market rate of return on this stock?

Excellent resource for interested in careers : The following website is an excellent resource for those interested in careers that utilize statistics and probability. Open the link in a new tab.

Least associated with takeovers : Which one of these is least associated with takeovers?

Which of the four managers should clark favor : Which of the four managers should Clark favor? Which of the proposals is most viable? Which is least? How does this impact the investment decision

User Account

All Pages