Compute the annual payment
Course:- Accounting Basics
Reference No.:- EM132231829

Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question - You won the lottery for 300 million. You can take a lump sum today in the amount of $92,495,600(ignore the income tax). Or you can receive an annual payment amount (annuity) for the next 30 years. Calculate the annual payment based on 4% rate. Which option would you choose and why?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The accounts payable account has a beginning balance of $12,000 and we purchased $50,000 of inventory on credit during the month. The ending balance was $10,000. How much di
Owing to low liquidity, Lisa Ltd decides on 1 July 2015 to sell its land and buildings to Anderson Ltd. Provide the entries for the sale and leaseback in the books of Lisa Ltd
What are the elements of capital budgeting? How do you determine these elements in the global business arena? Provide examples of how you would use capital budgeting analysi
Prepare a sales budget in units and dollars, by month and in total. for the second quarter (April, May, and June) of 2013. Prepare a schedule of cash collections from sales, b
Magenta Corporation also distributed $60,000 to its sole shareholder, Chuck, on November 30 of the current year. As a result of the distribution, which of the following is t
1.On January 1, 2013, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds were priced at $140 million to yield 12%. Interest is paid semiannually on
The Ramon Company manufactures a wide range of products at several different plant locations. The Franklin plant, which manufactures electrical components, has been experien
Without prejudice to your solution to part (a), assume that you computed the June 30, 2010, inventory to be $59,400 at retail and the ratio of cost to retail to be 70%. The