Determining the immediate payment

Assignment Help Business Management
Reference no: EM131212770

Suppose you win the lottery in 2010 when the jackpot amount is $162 million. You can receive the jackpot amount paid out evenly over 26 years or you can elect to take an immediate payment of $95 million, before taxes. Ignore all tax effects. Assume the market interest rate at the time is 7%.

Considering the above scenario, which option is most advantageous and why? (Be specific as to any calculations performed.) What other factors should be considered in making your decision?

Reference no: EM131212770

Questions Cloud

Labor groups in the united states : Is their opposition to FDI defending only their special interest, or might it also be in the national interest? Explain.
Problem regarding the market interest rate : Suppose you win the lottery in 2010 when the jackpot amount is $162 million. You can receive the jackpot amount paid out evenly over 26 years or you can elect to take an immediate payment of $95 million, before taxes. Ignore all tax effects. Assum..
Replace the natural joins in the following expressions : Replace the natural joins in the following expressions by equivalent theta-joins and projections. Tell whether the resulting theta-joins form a commutative and associative group.
Goal of the mne is to maximize its global after tax profit : If the goal of the MNE is to maximize its global after-tax profit, which of these three should the controller choose? Why?
Determining the immediate payment : Suppose you win the lottery in 2010 when the jackpot amount is $162 million. You can receive the jackpot amount paid out evenly over 26 years or you can elect to take an immediate payment of $95 million, before taxes. Ignore all tax effects. Assum..
Prepare a production budget and manufacturing budget : Prepare a production budget. Ensure the accuracy of your data. Prepare a manufacturing budget. Ensure the accuracy of your data. Prepare a selling expense budget. Ensure the accuracy of your data.
Evaluating the entire expression : Make whatever assumptions you wish about the number of available main-memory buffers and the sizes of relations mentioned in E and F.
Factors contributed to failure of thai governments plan : In 2008 India and Vietnam restricted their rice exports to prevent increases in their domestic rice prices, and world rice prices temporarily tripled.- What factors probably contributed to the failure of the Thai government's plan?
High degree of connectedness : With so many ways to stay connected (e-mail, voice mail, text messaging, and so on) and with many people feeling overwhelmed because of this high degree of connectedness, what are some ways to give yourself a break from always being on call while ..

Reviews

Write a Review

 

Business Management Questions & Answers

  Mastering virtual teams and project management

Explain what actions can the project manager take to ensure that the two teams coordinate their efforts so that a working Web site can be completed on time?

  What is the present value of a monthly payment

What is the present value of a monthly payment of $200 for every month through the next 8 years? Presume that the rate of interest is 6% annually.

  Marginal rate of substitution function

For each of the following utility functions, find the marginal rate of substitution function, MRS, and plot the indifference curve for which the consumer reaches a utility level of U = 10.

  What is the profit maximizing solution

The firm for which you are a manager operates in a perfectly competitive market. The market price for this perfectly competitive firm is P = $14. You are also given your estimated total cost curve, C(Q) = 10 + 4Q + 0.5Q2.

  Creation of a resume for entry

Write a current resume specifically describing those activities or awards that an applicant thinks helpful to succeed in the Harvard University Graduate Programs.

  Question regarding the work in the factory

In managerial accounting, what is labor in which employees CANNOT be easily traced to but work in the factory?

  Trends which have affected the food and beverage

trends which have affected the food and beverage industrywhat recent trends have affected the food and beverage

  How might the local governing bodies implement tax policies

Select one area of development needed in your own community (VIRGINIA BEACH) and create a sustainability plan around it, addressing the questions listed below: How might the local governing bodies implement tax policies to encourage such development?..

  Evaluate the performance management process

Reflect on and evaluate the performance management process and plans within your own organization and role. Provide recommendations on best practices and strategies to improve performance and achieve organizational goals.

  Despite the current push in labor activism

Despite the current push in labor activism, do you believe that the Chinese government is really open to the criticisms of worker's rights or do you believe that they would continue to restrict the flow of information and Internet and disrupt the ..

  Significant amount of damage

Burglar Bob breaks into Vince Victim's house. Bob steals a flat-screen TV and laptop and does a significant amount of damage to the property before he leaves. Fortunately, Vince has a state-of-the-art security system.

  Show the organizational change

Show the Organizational Change - which kind of department is most important to an organization? Why? Could an organization function without either of them?

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