Calculating Present Value [LO2]  You have just received notification that you have won the $1 million first prize in the Centennial Lottery.  However, the prize will be awarded on your 100^th birthday (assuming you're around to collect), 80 years from now.  What is the present value of your windfall if the appropriate discount rate is 9 percent?

Posted Date: 3/29/2013 4:07:40 AM | Location : United States

Ask an Expert

Related Discussions:- Calculating present value, Assignment Help, Ask Question on Calculating present value, Get Answer, Expert's Help, Calculating present value Discussions

Write discussion on Calculating present value
Your posts are moderated

Write your message here..

Related Questions

Prepare the additional journal entry, In the current year, Madison Corporat... In the current year, Madison Corporation had $50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a warranty l

Determine arbitrage-free rate of interest, The government of a country has ... The government of a country has just issued a series of zero-coupon bonds maturing at the end of years 1, 2, 3 and 4. Suppose the spot rates (or continuously compounded yields per

Bond''s yield to maturity, A 15-year, 14% semiannual coupon bond with a par... A 15-year, 14% semiannual coupon bond with a par value of $1,000 may be known as in 4 years at a call price of $1,075. The bond sells for $1,050. (Suppose that the bond has just be

Market microstructure and electronic trading, 1. You (Exchange) have just f... 1. You (Exchange) have just filled an order and notified involved traders of their fills. Next you must tell the world about this trade. Suppose you flip a coin. You flip a coin

Required: prepare journal entries for the above transactions, Sleek Ride, a... Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the ?rst 10 days of June: a. Purchased, o

Uniform accountancy act, Uniform Accountancy Act (UAA) - UAA is the propos... Uniform Accountancy Act (UAA) - UAA is the proposal for a new regulatory framework for the public accounting profession that was developed jointly by the American Institute of Cer

Show that a price is not an equilibrium price for asset, 1. Suppose that th... 1. Suppose that the one-period rate is 4% and that the two-period rate is 6%. What sort of expectation for the one-period rate next period makes this situation an equilibrium? 2

Rectification of errors, sale of 430 to ramdas were credited in his account... sale of 430 to ramdas were credited in his account 340

Interest revenue, Interest revenue: At the end of 2012, a manufacturer... Interest revenue: At the end of 2012, a manufacturer sells machinery to a customer for $90,000. $30,000 is paid immediately, and the customer signs a promissory note for the r

When youre using accounting software, when youre using accounting software ... when youre using accounting software why would you use hot keys and shortcuts a.to quickly access commands b.to input data for you c.to start the program d.to write checks