What is the net present value of the deal

Assignment Help Business Management
Reference no: EM132395386

Please use the financial calculator to answer the question:

You have just paid $20 million in the secondary market for the winning Powerball lottery ticket. The prize is $2 million at the end of each year for the next 25 years. If your required rate of return is 8 percent, what is the net present value (NPV) of the deal?

Reference no: EM132395386

Questions Cloud

Develop and implement culturally responsive pedagogy : Being an enthusiast for educational reform, you see the necessity to develop and implement culturally responsive pedagogy as it positively affects students.
Calculate the payback period for printer 1 : Dave Hirsh publishes his own manuscripts and is unsure which of two new printers he should purchase. He is a novelist living in Parkman, Illinois.
What is the irr of the proposed investment : a. What is the IRR of the proposed investment? b. What is the MIRR of the proposed investment? Assume a cost capital of 10%.
Discuss primary and support activities that organization : Discuss the primary and support activities that an organization can use that create value, according to Porter. How might these be applied to business partners?
What is the net present value of the deal : If your required rate of return is 8 percent, what is the net present value (NPV) of the deal?
What is the npv of the planned gifts : The student plans to save these funds in a money market fund expected to return 2% per year. In today's dollars, what is the NPV (net present value) of the plan
Apply an integrated development environment : Programming Work - Apply object-oriented concepts to construct classes and methods to solve problems and make decisions.
Culture and trust in knowledge sharing : Culture and Trust in Knowledge Sharing. Explains how organizational culture is used within your organization to foster knowledge sharing.
Capital budgeting decision : Leo is considering adding a deli to his general store. The initial expenses for remodeling are $2,500. Deli sales are expected to produce net cash inflows

Reviews

Write a Review

Business Management Questions & Answers

  Losses involved only barings'' own trading accounts

In 1995, Barings Bank PLC, which proudly boasted of its position as banker to the Queen of England, collapsed after announcing trading losses of 827 million.

  Marketing a new line of televisions in the united states

Select the communication channel that is best for marketing a new line of televisions in the United states (domestic market) and international market (Australia).

  Can starbucks go downmarket

Much like Starbucks, the target market is the high end consumer. My question is why have Ralph Lauren's products been able to weather the recession?

  Expand and experience other cultures

Why is it important to embrace the culture we come from, but also expand and experience other cultures?

  Describe your framework and justify the critical elements

Develop a framework that you could use to assess an organisation in terms of innovation. Describe your framework and justify the critical elements (with reference to the literature).

  Discuss the role of volunteers and their influence

In this assignment, you will discuss role of volunteers and their influence on organizational decision-making. Doctoral learner are require to use APA style.

  Wal-mart is very much larger than most of the environmental

Wal-Mart is very much larger than most of the environmental NGOs with which it works. What is the likelihood that Wal-Mart might have undue influence in these relationships

  Steps to get into a leadership position

Describe the steps you've taken to get into a leadership position.

  Security risks associated with cloud computing

The cloud offers many benefits and advantages to companies and organizations. What are some of the risks that are associated with cloud based services?

  Address the challenges that the united states faces today

From your own experience, which method of analysis (realism, feminism...) appears best suited to address the challenges that the United States faces today?

  What is the basic gradient descent algorithm

What is the basic Gradient descent algorithm and how do you apply it to simple example?

  Which stock exchange is the business listed on

When did the business go public (i.e. when was it listed on a stock exchange? Please include a link to where you located the information.

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