What is current value of her winnings

Assignment Help Financial Management
Reference no: EM132058995

Rita Gonzales won the $80 million lottery. She is to receive $2.4 million a year for the next 30 years plus an additional lump sum payment of $8 million after 30 years. The discount rate is 12 percent.What is the current value of her winnings?

Present Value -

Reference no: EM132058995

Questions Cloud

Create an onboarding program for all new employees : Your task is to create a proposal for an onboarding program (also known as an orientation or organizational entry and socialization program).
Research about view on corporate social responsibility : Are there programs or initiatives in place to contribute to the community in some way?
When considering pair of potential investments : When considering the two investments rules how do they effect the investment choice when considering a pair of potential investments?
Why the example fits your definition type of causality : Post two example claims of at least two types of causality and label them appropriately.
What is current value of her winnings : Rita Gonzales won the $80 million lottery. The discount rate is 12 percent. What is the current value of her winnings?
Describe who you think little caesars target market is : Using pivot tables, compare the demographics, attitudes, and spending data across the different segment groups you created for exercise 8.
Should higher education be classified as a natural monopoly : Most European countries have nationalized their universities and colleges. Consider that some countries have also used the law to ban private colleges.
What is the intrinsic value of option-what is the time value : Consider a put option trading at $4.10 expiring next week. What is the intrinsic value of this option? What is the time value?
What happens to the errors when the regression line is fit : This question is a general question not related to any particular data. What happens to the errors when the regression line is fit on curving data?

Reviews

Write a Review

Financial Management Questions & Answers

  Sufficient internally generated equity to cover equity cost

Rodney Ruxin's Legal Services is raising capital to open a new law office in southern California. The project has an initial start up cost of $752,995.  The firm has sufficient internally generated equity to cover the equity cost of this project. Wha..

  What is the project profitability index

Vandelay Industries is evaluating a project that costs $1,350,000 and has a 20 year life. Depreciation will be straight-line to zero over the life of the project. Management believes they will be able to sell the equipment at the end of the project f..

  Calculate the fair present values of the bonds

Calculate the fair present values of the following bonds, all of which pay interest semiannually, The bond has a 6.2 percent coupon rate.

  Prepare a formal statement of cash flow for 2017

Prepare a formal statement of cash flow for 2017 and identify the major cash inflows and outflows that were generated by the company.

  Make the smartest decisions when it comes to money

Richard doesn't always make the smartest decisions when it comes to money. He has more taxes withheld from his paycheck so he will get a large check in April from the IRS. Well, this check came in the mail yesterday. $1200.00 and he deposited it into..

  Determine if purchase of the van is economically feasible.

ACME is considering purchasing a new van to deliver its products. Determine if the purchase of the van is economically feasible.

  Variable growth version of the dividend valuation model

Assume you’ve generated the following information about the stock of Bufford’s Burger Barns: The company’s latest dividends of $4 a share are expected to grow to $4.32 next year, to $4.67 the year after that, and to $5.04 in three years. Use the vari..

  NOI will be level but the property value will increase

A property is expected to have NOI of $100,000 during the first year. Using a 10 percent yield rate (YO) and a five-year holding period, estimate the value under the following assumptions: a. NOI will be level but the property value will increase by ..

  Compute the realized rate of return for investor

Six years ago the Singleton Company issued 28-year bonds with a 13% annual coupon rate at their $1,000 par value. The bonds had a 8% call premium, with 5 years of call protection. Today Singleton called the bonds. Compute the realized rate of return ..

  Find the coupon rate

Today is a day in May 2525 and a bond with an annual yield-to-maturity of 9.0% just yesterday paid a coupon. The bond matures in May 2543 and its quoted bond price is 130.03 percent of par (semi annual compounding). Find the coupon rate.

  The systems will reduce insurance claims

Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit.

  What is the value of the bondholders call option

A 12-year maturity convertible bond with a face value of $1,000 and a 6% coupon on a company with a bond rating of Aaa is selling for $1,140. The bond pays interest annually. Each bond can be exchanged for 20 shares, and the stock price currently is ..

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd