What is present value of winnings

Assignment Help Financial Management
Reference no: EM131901072

The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $52,000 a year for the next 16 years.

With a discount rate of 9 percent, what is the present value of your winnings? Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131901072

Questions Cloud

Conduct research around the event you chose : Conduct research around the event you chose. For this assignment, you are required to utilize at least one source from the CSU Online Library.
What is at end of year 1 : Suppose that $2000 is placed in an account that pays 2% interest compounded each year. Assume that no withdrawals are made from the account.
Determine john net dollar gain per share : Determine John’s net dollar gain per share. what is the net gain or loss per share to Beth?
How does ozma of oz depict access to abundance and leisure : How does Ozma of Oz depict access to abundance and leisure? Why is Comstock so concerned with the corruption of youth through evil reading?
What is present value of winnings : With a discount rate of 9 percent, what is the present value of your winnings?
Assessment - Strategy Development for Zespri : ASSESSMENT - STRATEGY DEVELOPMENT FOR ZESPRI. Zespri can build the strongest brand reputation in the USA and be known at the best kiwifruit
Determine the speed of the car : Use these data to determine the speed of the car when the driver slammed on (and locked) the brakes. Why does the car's mass not matter?
What is the difference between hard costs versus soft costs : What is the difference between hard costs versus soft costs? Why is a standby lender a good idea for a potential commitment?
Find the force he exerts on the ball : If the ball has a mass of 0.150 kg, find the force he exerts on the ball to give it this upward speed.

Reviews

Write a Review

Financial Management Questions & Answers

  Before-tax cost of debt capital-average risk projects

The Classic Car co. has a before-tax cost of debt capital of 9%, a cost of preferred stock of 10%, a cost of equity capital of 14%, and a marginal tax rate of 40%. The market values of its debt, preferred stock and common stock are $40 million, $20 m..

  Pure expectations theory would imply about the yield curve

Discuss what the pure expectations theory would imply about the yield curve.

  In the statement of cash flows

In the Statement of Cash Flows, a source of cash would be: A decrease in assets or an increase in liabilities An increase in assets or a decrease in liabilities Increase in Inventories Decline in notes payable

  What tools can managers use to enhance the understandability

What tools can managers use to enhance the understandability and comparability of performance analysis? How does the flexible budget formula enhance understandability and comparability when preparing a flexible budget?

  The process of earning interest

The process of earning interest on prior interest earnings is called discounting.

  Shown with their probabilities and associated outcomes

Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associa..

  Do not round at intermediate steps in your calculation

Do not round at intermediate steps in your calculation. Round your answer to the nearest penny. Do not type the $ symbol.

  What is the internal rate of return or the irr for project

The expected cash flows for each year of the five year period is $120,000, $155,000, $186,000, $208,000, and $225,000 for the five years. What is the internal rate of return or the IRR for the project?

  What is the market value of the building in dollars

You are considering the purchase of a small office building. what is the market value of the building, in dollars?

  Leave the humane society

If you leave the Humane Society $25,000 how much can they spend each year forever? The HS can get return of 4% on their investments.

  What are the problems with americarsquos current medical

1.what concepts in the chapter are illustrated in this case? who are the stakeholders in this case?2. what are the

  What was? jeffs annualized hpr on this? investment

What was? Jeff's annualized HPR on this? investment

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