User Account

All Pages

What is the lump sum you would expect to receive today

Assignment Help Accounting Basics
Reference no: EM133148407

Question - Referring to the three fundamental principles and three precepts of finance, while integrating a principle, a precept, or both in your response please answer the following. You win a lottery that pays $5,000 per month for 20 years, starting today. You have the option of taking a lump sum today instead of the monthly payments. The lottery people tell you that, if you take the monthly payments, the money you won is expected to earn 7.25% APR, compounded monthly, for the entire 20 years it will be invested. Given these data, what is the lump sum you would expect to receive today? Also discuss the pros and cons of receiving a lump sum or monthly payments?

Reference no: EM133148407

Questions Cloud

Identify two strategies discussed by chip heath : Identify two strategies discussed by Chip Heath that will help you make better career decisions?
Mention two characteristics of employees : -As an employee, explain two benefits and two disadvantages of being part of the in-group and the out-group.
Setup a Sandbox environment with servers : Setup a Sandbox environment with servers and a workstation to begin testing Proof of Design network infrastructure
Corporate social responsibilities in the long run : Explain how the BSC approach can help sustain Corporate social responsibilities in the long run?
What is the lump sum you would expect to receive today : Given these data, what is the lump sum you would expect to receive today? Also discuss the pros and cons of receiving a lump sum or monthly payments
Describe the aspects of the organization culture : Describe the aspects of the organization's culture that support those financial practices (whether good or bad)
What the amount of direct labor and factory overhead : Wilturner Company incurs $81,000 of labor related directly to the product in the Assembly Department, What the amount of direct labor and factory overhead
Calculate the cost of goods available for sale during year : Bill Rose owns Rose Sporting Goods. At beginning of the year Rose Sporting Goods had $2,300 in inventory. Calculate cost of goods available for sale during year
What is value of customer relations and customer services : Question - Make an Essay about - What is the value of customer relations and customer service

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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