Which option has greater present value

Reference no: EM13294099

Suppose you win a lottery with a $1,000,000 prize. You can either take the prize as $50,000 per year for each of the next 20 years, or can take a lump sum today of $600,000. Assuming your discount rate is 10%, which option has greater present value?

Reference no: EM13294099

Questions Cloud

Explain the ka of butyric acid c3h7cooh : The Ka of butyric acid, C3H7COOH is 1.5 x 10-5. What is [C3H7COO-] in a 0.397 M solution of C3H7COOH

What catalysts for change-health care environment : What catalysts for change do you think exist within the health care environment? Discuss how these catalysts will affect the health care environment and the changes that need to occur.

Define how many kilojoules of heat are required to evaporate : How many kilojoules of heat are required to evaporate 1 liter of water at 1 atm if the initial water temperature is 20 degrees Celcius

Calculate the work done on the bag by the conveyor belt : A piece of luggage is being loaded onto an airplane by way of an inclined conveyor belt. calculate the work done on the bag by the conveyor belt

Which option has greater present value : Suppose you win a lottery with a $1,000,000 prize. You can either take the prize as $50,000 per year for each of the next 20 years, or can take a lump sum today of $600,000. Assuming your discount rate is 10%, which option has greater present valu..

The guidelines prescribed by elkeles and phillips : Students will interview a CLO (or research the role of a CLO.) Be prepared to compare and contrast how he or she is building value for his or her organization to the guidelines prescribed by Elkeles and Phillips.

Explain what is the molarity of a 1:1 hno3- water solution : Assuming that concentrated HNO3 (70% HNO3) is 16M, what is the molarity of a 1:1 HNO3:Water solution

What percentage of the power would be dissipated : You are given the job of evaluating potential power line systems. What percentage of the power would be dissipated in the low-voltage power line

Find impulse response sequence y due to impulse sequence : Given the following difference equation with the input-output relationship of a certain initially relaxed system (all initialconditions are zero), y(n) - 0.7 y(n-1) + 0.1y(n-2) = x(n) + x(n-1)

User Account

All Pages