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

  Hedging-selecting correct futures hedge

You're a US company with a customer that is going to pay you 10,000 Euros in six months. The correct futures hedge for this condition is to enter in a contract in which you buy Euros (True or False)

  What is the value of the stock today

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; What is the value of the stock today

  Find the rate of return on common stockholders equity

Jennifer Company reports the following amounts for 2010: Net income $135,000. The 2010 rate of return on common stockholders' equity is

  Dougco a domestic corporation owns 100 of thaico a thailand

dougco a domestic corporation owns 100 of thaico a thailand corporation. dougco manufactures top-of-the-line offi ce

  How much profitsprofitsarrow-10x10png will increase or

royal company manufactures 22000 units of part r-3 each year for use on its production line. at this level of activity

  How near to sale is the inventory on hand

How efficient is a company in using its assets to produce sales? How near to sale is the inventory on hand

  What is the variable manufacturing cost per unit

What is the variable manufacturing cost per unit, 2,000 units were produced and sold

  Calculate purchases gross margin inventory turn days

analytical procedures in audit planning the audit of circuits technology inc. cti. cti resells installs and provides

  Roester inc set its cost per a unit at 120 its markup

roester inc. set its cost per a unit at 120. its markup percentage is 50 percent. what is roesters selling price? what

  Make some recommendations to remedy identified weaknesses

Assume that no additional employee can be hired, make some recommendations to remedy identified weaknesses. Identify control weaknesses at Crimson Electricals

  Which resolution is valid

The directors of Green Hill Pty Ltd resolve that the company acquire a particular property. Which resolution is valid

  Compute the debt to assets ratio and times interest earned

Make a 3-year trend analysis, using 2011 as the base year, of net sales and net income. Compute the debt to assets ratio and times interest earned

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