Last Friday’s Mega Millions prize was estimated to be $145 million. Reported Lottery prizes are just the sum total of the future annual payments. In this case, 26 beginning of the year annuity payments that will be paid to the prize winner. For the current prize: annual annuity payment = $145 million/26 = $5.577 million. Of course, this $145 million annuity total ignores the time value of money The winner can elect the cash option of $98 million today instead of the 26-year annuity that totals $145 million. What is the difference between today’s present value of the cash option and annuity payout at 3.5% compounded annually? Calculate your answer as PV(cash option) - PV(annuity payout).
Answers: 2
Another question on Business
Business, 21.06.2019 20:20
After all revenue and expense accounts have been closed at the end of the fiscal year, income summary has a debit of $2,450,000 and a credit of $3,000,000. at the same date, retained earnings has a credit balance of $8,222,600, and dividends has a balance of $125,000. required: a. journalize the entries required to complete the closing of the accounts on december 31. refer to the chart of accounts for exact wording of account titles. b. determine the amount of retained earnings at the end of the period.
Answers: 1
Business, 22.06.2019 00:00
Which statement about the cost of the options is true? she would save $1,000 by choosing option b. she would save $5,650 by choosing option a. she would save $11,200 by choosing option b. she would save $11,300 by choosing option a.
Answers: 2
Business, 22.06.2019 14:30
Stella company sells only two products, product a and product b. product a product b total selling price $50 $30 variable cost per unit $20 $10 total fixed costs $2,110,000 stella sells two units of product a for each unit it sells of product b. stella faces a tax rate of 40%. stella desires a net afterminustax income of $54,000. the breakeven point in units would be
Answers: 3
Business, 22.06.2019 20:00
During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above
Answers: 3
You know the right answer?
Last Friday’s Mega Millions prize was estimated to be $145 million. Reported Lottery prizes are just...
Questions
Computers and Technology, 30.03.2020 22:44
Mathematics, 30.03.2020 22:45
Computers and Technology, 30.03.2020 22:45
Computers and Technology, 30.03.2020 22:45
