What is the value of the prize today

Assignment Help Financial Management
Reference no: EM131561051

A lottery winner wins the One Million Dollar Prize. After winning, she finds out that the payments arc actually made annually over the next 15 years in installments of $ 50.000 each for each of the first 10 years, and $ 100,000 each for each of the next 5 years. What is the value of the prize today, if ROI is 9%?

Reference no: EM131561051

Questions Cloud

What happen when you go through an ipo you : What happen When you go through an IPO you? n important advantage of switching from a Sole Proprietorship to a LLC is that-
Direct bankruptcy costs : Direct bankruptcy costs. ART has come out with a new and improved product.
Analyze the sdlc and the fundamentals of project management : Analyze the SDLC and the fundamentals of Project Management. Demonstrate an understanding of BI Tools and how they benefit the business.
Explain why did you pick these companies : 1. Explain why did you pick these companies? 2. What are the advantages of using LinkedIN as a platform for finding a job?
What is the value of the prize today : A lottery winner wins the One Million Dollar Prize. What is the value of the prize today, if ROI is 9%?
Develop a presentation that outlines your suggested path : Develop a PowerPoint presentation that outlines your suggested path to updating Centervale's disaster management plan.
Growing significance of data and databases : Read through the article Big Data basic concepts and benefits explained. Focus on why this has become a hot topic in the business world.
Company manufactures home security system : The company manufactures home security system. What is HomeWeb UK's net income?
How many earths it took when my location was the us : I was surprised by how many Earths it took when my location was the US. I had assumed since I carpool often and recycle everything.

Reviews

Write a Review

Financial Management Questions & Answers

  A firm credit policy consists of which of the items

A firm's credit policy consists of which of the following items?

  What is the addition to retained earnings

Draiman, Inc., has sales of $598,000, costs of $260,000, depreciation expense of $64,500, interest expense of $31,500, and a tax rate of 40 percent. The firm paid out $42,500 in cash dividends. (Enter your answer as directed, but do not round interme..

  Statements is true of zero coupon bonds

Which of the following statements is true of zero coupon bonds?

  Common stock of two particular firms

Your research has determined the following information about the common stock of two particular firms.  What type of risk are we considering here? Is there anything that can be done to reduce this type of risk? If so, what? When is this type of risk ..

  How much money can you get by selling your rights

Roth Corp. wants to raise $4.0 million via a rights offering. The company currently has 500,000 shares of common stock outstanding that sell for $36 per share. Its underwriter has set a subscription price of $25 per share and will charge the company ..

  Stock splits and large stock dividends

(Stock splits and large stock dividends?) Marston Mfg. recently declared a 4?-for-1 stock split for its common shares. Before the split the? firm's share price had risen to? $600 per share and the? firm's CFO felt that this high stock price inhibited..

  Shares of common stock outstanding

Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $79, and the book value per share is $6. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate..

  What is the rate of return on stock

Company Z just paid an annual dividend of $1.22 a share. The stock has a market value of $34.60 and a dividend growth rate of 3.1 percent. What is the rate of return on this stock?

  Reason municipal bonds offer lower rates of interest income

Which of the following is a reason municipal bonds offer lower rates of interest income for their investors?

  Firms debt and equity and assuming excess cash is? zero

What is? Ojai's debt-to-enterprise-value ratio calculated using the market values of the? firm's debt and equity and assuming excess cash is? zero?

  What are these payments worth to you today at discount rate

What are these payments worth to you today at a discount rate of 12 percent, compounded annually?

  What is the joke shop intrinsic value

The Joke Shop free cash flows to the firm are expected to be $2 million next year and $8 million the following year. Beginning in year 3, Alpine believes the Joke Shop free cash flows will grow by 4% per year in perpetuity (a heroic assumption). The ..

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