User Account

All Pages

Difference between the present values of the two options

Assignment Help Business Management
Reference no: EM131702653

You won a $50 million dollar state lottery today! Upon winning, you were informed that you could choose to receive the prize money in one of the following two ways:

1) 25 payments of $2 million per year starting today

2) $30 million dollars paid today

Assume the market interest rate at this time is 7%. Which option should you take? In other words, which option has the higher total present value? What is the difference between the present values of the two options?

Reference no: EM131702653

Questions Cloud

Determine the affirmative action plan is justified : How will the court rule on his challenge? What is the proper comparison to determine whether the affirmative action plan is justified?
What impact will the cost of the purchase : a. What impact will the cost of the purchase have on earnings for each of the next 5
Perform impairment test and make any necessary journal entry : Wahoo's initial cost of Haddock's net assets was $1,400,000 with $300,000 attributed to goodwill. Perform impairment test and make any necessary journal entry
Discuss about international power relations : The things that are usually forgotten is the underdevelopment which is rooted not only in international power relations, but also in the power relations
Difference between the present values of the two options : In other words, which option has the higher total present value? What is the difference between the present values of the two options?
Can the girls club articulate a bonafide business reason : Can you suggest a theory under which Chambers could challenge her discharge based on race discrimination? Can the Girls Club articulate a bonafide business.
Explain the differences between push and pull systems : escribe the meaning of waste in JIT? Explain the differences between "push" and "pull" systems ?
What is the project npv : The tax rate is 34 percent and the required return on the project is 10 percent. What is the project's NPV?
How was anthropology evolved over the past century : How was anthropology evolved over the past century, What contributions can anthropology provide to aboriginal people today

Reviews

Write a Review

Business Management Questions & Answers

  Assignment: bppg-individual reflection

Individual Reflection: Blueprint for Professional and Personal Growth-Managing Business Information Systems, Executive Summary of Class and Collaboration Skills

  Identify the first step in the students guide to research

Identify the first step in the student's guide to research. Define the first step of research in your own words. Identify the major assumptions and bias of the drug industry that underlie drug research.

  Require firms to report accounting profit

If managers and investors find cash flow more important than accounting profit, why do we still require firms to report accounting profit?

  Assignment on current event article summary

Prepare a current event article summary on a court decision involving discrimination. Summarize the article using the following format:

  Explain the main advantages of using data analytics

Analyze the main advantages and disadvantages of using data analytics within the industry or company that you have chosen. Use at least three quality references.

  The difference between branding communications

Explain, in your own words, the difference between branding communications and sales or promotional communications. Give specific examples. Which is more effective? Would you recommend one over the other? Why or why not?

  In what foreign countries does the firm do business

In what foreign countries does the firm do business? Is the firm seeking to expand into new foreign markets?- How does its overseas sales growth compare with its domestic sales growth?

  Department of a large organization

You have decide that the recruitment and selection policies currently being followed are outdated and in need of review.

  Case study the overpaid banktellers1 if you were on the

case study the overpaid banktellers1. if you were on the banks hr committee what would you do regarding raises for the

  Select a public organization of your choice and run a pests

Select a public organization of your choice and run a PESTS analysis. Based on your analysis, illustrate what strategic initiative would you recommend

  Managerial applications of information technology

How much can business intelligence and business analytics help companies refine their business strategies?

  Purchasing the existing business

Determine if it would make more sense to open the new business you describe or to purchase the existing business you selected. Explain your reasoning.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd