Percent rate of return on investments

Assignment Help Accounting Basics
Reference no: EM131016572

You just won a $10 million grand prize payable in annual payments of $250,000 per year for each of the next 40 years beginning today. Suppose you can earn an 8 percent rate of return on your investments and someone offers you 3.2 million for the cash flow stream. Is this offer a good deal from your perspective?

Reference no: EM131016572

Questions Cloud

What stock price is expected : Woidtke Manufacturing's stock currently sells for $30.00 a share. The stock just paid a dividend of $1.44 a share (i.e., D0 = $1.44), and the dividend is expected to grow forever at a constant rate of 5.25% a year. What stock price is expected 1 y..
The children''s online privacy protection act : The Children's Online Privacy Protection Act: deals only with the collection of data that will be disclosed to children. deals only with collecting, from children, information that will be disclosed publicly.
Which loan should he choose : Rico needs 2500.00 to buy a computer.2yr. Unsecured loanthrough credit union is 12%interest. The current rate on his revolving home equity loan is 8.75%.Rico is in a 15%federal tax rate and 5.75% state tax rate. Which loan should he choose? WHY? ..
Relevant facts concerning the estate : A woman recently died with only probate assets. Under the term of her will, she left her entire probate estate outright to her husband. The following are relevant facts concerning the estate.
Percent rate of return on investments : You just won a $10 million grand prize payable in annual payments of $250,000 per year for each of the next 40 years beginning today. Suppose you can earn an 8 percent rate of return on your investments and someone offers you 3.2 million for the c..
Preventative care and shorter lengths of hospital stay : Preventative Care and Shorter Lengths of Hospital Stay" APA format, minimum 1500 words for the bidy of the paper, in cite citation, references, no plagiarism
What are the new values of wtp and wts : Now suppose that SGC can build an airport close to Isolated for $2 million and purchase a cargo plane for $500,000 that could ship the gold straight to its overseas buyers for $25 per ounce. Does this affect WTP or WTS? What are the new values of ..
Calculate the present value annuity in millions : You have won a lottery which will pay you 10 annual checks of $3 million each. Your checks will begin arriving starting a year from now. Calculate the present value annuity in millions of dollars of these cash flows assuming a discount rate of 5%.
What are the critical health issues you need to address : Select a country with a significant exodus of citizens. If you are the head of the refugee resettlement camp in (receiving country), what are the critical health issues you need to address and why

Reviews

Write a Review

Accounting Basics Questions & Answers

  Mozena corporation has collected the following information

mozena corporation has collected the following information after its first year of sales. sales were 1600000 on 100000

  Manual and system controls

Explain the differences between manual and system controls. Which type of control is preferable and why? Give an example of each of these controls that you encounter in your daily life.

  Susan ortiz operates a covered parking structure that can

susan ortiz operates a covered parking structure that can accommodate up to 600 cars. susan charges 6 per hour for

  Gorgeous georgie pty ltd georgie is a private company with

gorgeous georgie pty ltd georgie is a private company with many strategic investments. the finance director is

  Armington while robbing a drugstore shot and seriously

armington while robbing a drugstore shot and seriously injured jennings a drugstore clerk. armington was subsequently

  Boehm rest company has 30000 shares of its 1 par value

boehm rest company has 30000 shares of its 1 par value common stock outstanding. record in journal form the following

  Virtual organization link to access the virtual organization

Click the Virtual Organization link to access the Virtual Organizations. Select one of the Virtual Organizations as the basis for this assignment.

  What amount should be capitalized for the new asset

What amount should be capitalized for this new asset? Would there be any depreciation expense for land at the end of 2008? Explain your answer.

  Compare and contrast the gasb standards setting process

Discuss the rationale for GASB requiring raw sets of financial statements, each with a different measurement focus and basis for accounting for government activities. Do you agree with this rationale or not? Explain why.

  The balance of accounts receivable is 275000 the allowance

the balance of accounts receivable is 275000. the allowance for uncollectible accounts has a credit of 240. net credit

  Airflow company sells a product in a competitive

airflow company sells a product in a competitive marketplace. market analysis indicates that their product would

  You are working on saving for retirement you will reach

you are working on saving for retirement. you will reach full retirement age in 20 years and you can invest 5000 each

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