The state lotterys million-dollar payout provides

Assignment Help Financial Management

Reference no: EM13879693

The state lottery's million-dollar payout provides for $1 million to be paid out over the course of 19 years in equal cash amounts. The first payment is made immediately, and the remaining 19 payments occur at the end of each of the next 19 years. If 10% is the discount rate, what is the present value of this stream of cash flows? Hint: First calculate the payment amount.

Reference no: EM13879693

Questions Cloud

Calculate the diluted earnings per common share : At January 1, 2013, Canaday Corporation had outstanding the following securities:

How has the affordable care act changed the medicare program : How has the Affordable Care Act changed or impacted the Medicaid and Medicare programs? Provide references to support your discussion.

Find the financial banks rate of return : A Super Company urgently needs $600,000.00 for its business; will pay a Willing Sponsor the sum of $102,000.00 per year for the next 8 years for investing that requested sum. The Financial Bank is satisfied with getting the rate of 12% for the money...

The state lotterys million-dollar payout provides : The state lottery's million-dollar payout provides for $1 million to be paid out over the course of 19 years in equal cash amounts. The first payment is made immediately, and the remaining 19 payments occur at the end of each of the next 19 years. If..

Surge in the demand for its new product : Everest Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 28% for the next 2 years, 18.00% in year 3 and 4 and after which competitio..

Formulate an lp model that minimizes daily food expenditures : assume that the student wants to eat at least 0.25 pounds of cookies each day and will eat at most 0.50 pounds of carrots per day. Formulate an LP model that minimizes daily food expenditures while meeting the RDA and the other constraints given i..

What is the bonds capital gain or loss yield : Ezzell Enterprises' noncallable bonds currently sell for $939.00. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond's capital gain or loss yield?

What impact could a bioterror attack have in the usa : What impact could a bioterror attack have in the United States of America? What viruses could be used? Ebola? Flu? What kind?

User Account

All Pages