User Account

All Pages

What is the present value of your winnings

Assignment Help Financial Management
Reference no: EM132058639

You have just won the lottery and will receive $460,000 in one year. You will receive payments for 24 years, which will increase 4 percent per year. The appropriate discount rate is 10 percent.

What is the present value of your winnings?

Reference no: EM132058639

Questions Cloud

What is the weighted average flotation cost : Winter's prefers to finance its capital spending with 40 percent debt, 20 percent internal equity, and 40 percent external equity.
Compute the monthly payments : You wish to buy a $9,500 dining room set. The furniture store offers you a 2-year loan with an 11 percent APR. What are the monthly payments?
How much can the woman pay for the home : A woman is looking to purchase her primary home in the Cleveland Suburbs. She has enough for a 20% down payment and an income of $70,000 per year.
The company have to wait before expanding its operations : The firm earns 6 percent compounded monthly on the funds it saves. How long does the company have to wait before expanding its operations?
What is the present value of your winnings : You will receive payments for 24 years, which will increase 4 percent per year. The appropriate discount rate is 10 percent.
Why you chose one payout method versus the other : Detail for me your rationale behind why you chose one payout method versus the other. Be sure to show your PV calculations.
How long does the company have to wait before expanding : Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $180.12 million.
Estimate the cash flows from your lottery winnings : Assume there are 12 months in a year, each with 30 days. What is the present value of the cash flows from your lottery winnings?
Which machine will do more to increase shareholder wealth : Machine X costs $180,000 and has a four-year economic life if this machine is used, nit operating expenses will be $55,000 per year.

Reviews

Write a Review

Financial Management Questions & Answers

  Describe regressive-proportional and progressive financing

Describe regressive, proportional, and progressive financing.

  What was your real return form holding the bond one year

If inflation rate in January 2017 was 1.7%, what was your real return form holding the bond one year?

  Two approaches for computing the cost of equity

What are the two approaches for computing the cost of equity? How do you compute the cost of debt and the after-tax cost of debt?

  How fast are expenditures growing and in what areas

How fast are expenditures growing and in what areas? How do budgeted amounts compare to actual spending and revenues?

  Each of the loans payment and the total payment amounts

Calculate each of the loans payment and the total payment amounts.

  What is the variance of the minimum variance portfolio

What is the variance of the minimum variance portfolio:

  Firms target capital structure-debt and common equity

You are given the following data for a company: Cost of debt = 8%, cost of retained earnings = 12%, cost of new common equity = 14%, tax rate = 35% and retained earnings = $1000. The firms target capital structure is 40% debt and 60% common equity.

  What will be the price of each bond if their yields increase

Consider three bonds with 6.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The short-term bond has a maturity of 4 years, the intermediate-term bond has maturity 8 years, and the long-term bond has matur..

  Odd dividend policy-how much will you pay for share today

Hot Wings, Inc., has an odd dividend policy. how much will you pay for a share today?

  Compute the aftertax cost of preferred stock

Compute the aftertax cost of preferred stock. Compute the cost of retained earnings (Ke).

  Explain the organisation of the advertising

Explain the communication process that applies to advertising and promotion and explain the organisation of the advertising and promotions industry

  What required rate of return is implied by the current

Losh Key Corporation common stock is selling for $25.00 per share with an expect cash dividend next year of $1.00. Short term prospects are excellent for Losh Key: a 25% annual growth rate in dividend payments is expected for the three years followin..

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