What is the present value of lottery winnings

Assignment Help Financial Management
Reference no: EM132578030

You have won a small lottery in which you will receive a series of payments forever. The payments start at $1,200 received today and grow effectively at 5.25% a year forever. Given an APR of 7.25% compounded quarterly, what is the present value of your lottery winnings?

Reference no: EM132578030

Questions Cloud

Discuss about the windows system examination : Windows System Examination: Field Notes. Write 1-2 paragraphs concerning this form including answering the following questions: Do you find it useful?
What is the correct ear on loan : You are given the opportunity to borrow $1,025 today and must repay $1,113 in 6 weeks. What is the correct EAR on this loan?
What is the company weighted average cost of capital : Dividends are expected to grow at 3.06% indefinitely. What is the company's weighted average cost of capital?
Create a stop word list made up of the words : Write a script or application that takes a start page as a command line parameter - Create a stop word list made up of the words that appear in every document
What is the present value of lottery winnings : Given an APR of 7.25% compounded quarterly, what is the present value of your lottery winnings?
Define function of governance in a blockchain environment : Chapter 10 introduced the need and function of governance in a blockchain environment. Create a new thread, choose two aspects of enterprise blockchain.
What is the gain or loss on the forward contract : Brzoska Inc.'s German subsidiary has forecasted earnings next year of €10 million. Assume that the current one-year forward rate
What is the terminal cash flow of project : The tax rate is 25 percent and the required rate of return is 10 percent. What is the terminal cash flow of this project?
Develop a new erm for the current organization : Create a new thread. As indicated above, assume that you are an ERM consultant, retained by Intuit to re-implement their ERM. They have decided to start over.

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