What is the present value of this annuity stream

Assignment Help Financial Management

Reference no: EM131328517

You recently won the lottery for $100,000,000 and found out that they will pay you $5,000,000 per year for 20 years. Assume that the payments will be made to a tax shelter that you had previously set up and that no income taxes will be payable. If the discount rate that is reasonable is 3%, what is the present value of this annuity stream?

Reference no: EM131328517

Questions Cloud

Implementation aspects of digital innovation : Use a framework to assess the organisations current digital innovation - Going through this framework and discuss the issues uncovered through the assessment.

Demonstrate and apply knowledge of factors : After studying this course, you should be able to: Demonstrate and apply knowledge of factors to consider when planning to work with a chosen community. Demonstrate and apply knowledge of approaches that will facilitate engagement of the community

Family member indicates that they create budget annually : At your Thanks giving party, a family member indicates that they create a budget annually, but never seem to be able to stick to it. They’ve heard about these things called budget variances while listening to the news, but are not really familiar wit..

How can improving upon them impact your future success : What have you learned from the course about these topics, strategies, and/or techniques that you did not know before?

What is the present value of this annuity stream : You recently won the lottery for $100,000,000 and found out that they will pay you $5,000,000 per year for 20 years. Assume that the payments will be made to a tax shelter that you had previously set up and that no income taxes will be payable. If th..

What is the basic shape of a christian church of middle ages : 050138RR- What is the basic shape of a Christian church of the Middle Ages? Which of the following artists was not involved in the creation of Saint Peter's Basilica and the Vatican?

Write a summary that describes the website information : learning objectives for this module. Then write a summary describing how the website provided you with information for your game plan to obtain your management position.Form a collection of websites and resources relating to the module's learning ..

Write a video analysis- faa gate to gate : Whether you're flying in an airliner or piloting your own private airplane, you may feel you're getting more than your share of flight delays. Delays are mounting as air traffic increases, particularly in the United States. A big part of the probl..

Research information using primary and secondary sources : Draft five (5) questions that, as a paralegal, you would ask prior to beginning an interview with a client. Identify the primary purpose of each question.

User Account

All Pages