What is present value of your windfall

Assignment Help Financial Management
Reference no: EM131835121

You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 80 years from now.

Required:

What is the present value of your windfall if the appropriate discount rate is 10 percent? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16). Enter your answer in dollars, not millions, e.g., 1, 234,567.)

Present value $

Reference no: EM131835121

Questions Cloud

Estimate the reinvestment rate : The firm had earnings before interest and taxes of $ 704 million for the last fiscal year, Estimate the Reinvestment Rate.
Estimate the expected growth rate : Caballos, Inc., has a debt to capital ratio of 24%, a beta of 1.5 and a pre-tax cost of debt of 6%. Estimate the Expected Growth Rate.
Prepare thorough ratio analysis : Prepare a thorough ratio analysis (using as a minimum the applicable ratios from the textbook) for both UPS and FedEx.
Assume that the firm is in stable growth : Assume that the firm is in stable growth, and that the return on capital and reinvestment rates for the last fiscal year can be sustained forever.
What is present value of your windfall : What is the present value of your windfall if the appropriate discount rate is 10 percent?
What is the future value of ordinary annuity : What is the future value of a 16-year ordinary annuity with annual payments of $64,000, evaluated at a 8.0 percent interest rate?
What is the difference in annual inflation rates : Suppose the current exchange rate for the Polish zloty is zl 2.83. What is the difference in the annual inflation rates for the United States and Poland over th
How much will rebecca have to deposit today so that parents : how much will Rebecca have to deposit today so that her parents are paid $150 at the end of each month?
What is your best guess as to the rate of return on stock : what is your best guess as to the rate of return on the stock?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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