Which option should to select to maximize the payout

Reference no: EM13297094

You are the winner of a sweepstakes and given a choice of a one-time payment of $1,000,000 or a guaranteed $80,000 per year for 20 years. Assume that you will collect all 20 years regardless of health condition. You can expect the value of money to be 5%. Based on present worth analysis, which option should you select to maximize the payout?

Reference no: EM13297094

Questions Cloud

How to estimate the concentration of a in the reservoir : The rate constant for decay of contaminant A in the reservoir is k=1.5 (1/year). Assuming the population, discharge rate, and reservoir conditions have been stable for a long time, estimate the concentration of A in the reservoir.

Explain how many silver atoms are in a cube that measures : Silver metal has a density of 10.5 g/cm3. how many silver atoms are in a cube that measures 5.00cm on each side

Explain the sodium to consume the na2co3 completely : For the reaction Na2CO3(aq)+2HCl(aq)= 2NaCl(aq)+CO2(g)+H2O(l), suppose you have 100 mL of 3.80M Na2CO3. How many milliliters of 0.920 M HCl would you have to add to the sodium to consume the Na2CO3 completely

What is the range of the values that would be expected : a spot speed study was conducted on a freeway on which the mean speed and the standard deviation were found to be 72 .4 mi/hr and 5.4 mi/hr, respectively. what is the range of the values that would be expected to contain the middle 95 percent of s..

Which option should to select to maximize the payout : You are the winner of a sweepstakes and given a choice of a one-time payment of $1,000,000 or a guaranteed $80,000 per year for 20 years. Assume that you will collect all 20 years regardless of health condition.

Determine the differential equation of motion : Determine the differential equation of motion for the damped oscillations and find the time (in term of M) it takes for the system to settle down to oscillations of only 25% of the initial amplitude; (4')

Calculate the density of planet hephaestus : While looking through the Mt. Palomer telescope, you discover a large planetary object orbited by a single moon. calculate the density of Planet Hephaestus

Determine the vertical force exerted by the balloon : A ballon is tethered at a height of 16.8 m above the ground by three cables. if the tension in highlighted cable is 60 N , determine the vertical force exerted by the balloon at the base of the balloon basket.

State what is the final temperature of the iron : a piece of iron with a mass of 350g at 300 C is added to 1.00kg of water at 20 C. what is the final temperature of the iron

User Account

All Pages