How large a payment would you accept today

Assignment Help Financial Accounting
Reference no: EM131191886

You win a million- dollar lottery to be paid out in 20 annual installments of $50,000 over the next 20 years. Assuming an interest rate of 6 percent, how large a payment would you accept today for this future stream of income?

Reference no: EM131191886

Questions Cloud

Initially all the producers are earning a normal profit : Initially all the producers are earning a normal profit. Discuss this situation with a suitable dried cuttlefish market and a representative firm diagrams.
Encounters a linear demand curve : Evaluate the following statements and discuss whether they are true, false or uncertain. Justify your answers. (i) A monopolist encounters a linear demand curve should always produce at the point where the demand is unit elastic in order to maximis..
Find the number : For a certain three-digit number, the sum of the digits is 16, the middle digit is the sum of the end digits, and interchanging the units and tens digit will create a number 27 less than the original one. Find the number.
Estimate the appropriate cost of capital for the firm : MBA 521 Financial Performance Management Referral Assignment. Estimate the appropriate cost of capital for the firm using the Capital Asset Pricing Model and Weighted Average Cost of Capital; provide clear explanation of the rationale for your esti..
How large a payment would you accept today : Assuming an interest rate of 6 percent, how large a payment would you accept today for this future stream of income?
Demand for any product : (1a) In The News: If you bought any good or service this week, you have already participated in the market system that operates by demand and supply. What drives the demand for any product? Why are firms willing to supply it?
Describes your leadership style during your experiences : The personal leadership history report will review your leadership experiences and describes your leadership style during those experiences.
How much will the cd be worth at maturity : Assuming that interest payments are reinvested during the life of the CD, how much will the CD be worth at maturity if the interest rate is 5 percent?
Suppose the economy begins : Spending shocks and the medium run Suppose the economy begins with output equal to its natural level Using the AS-AD model developed in this chapter

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the entries on paltrow companys books

Prepare the entries on Paltrow Co.'s books related to the transactions that occurred on January 10, February 12, and March 1.

  What would be the gain or loss on the redemption

Hogan Company has $1,000,000 of bonds outstanding. The unamortized premium is $14,400. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

  Depletion cost charged to expense for the year

Land containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for USD 375,000. After the ore deposit is removed, the land will be worth USD 75,000. If 100,000 tons of ore are mined and sold during the first ye..

  Calculate any built-in gains tax

During 2014, Whindy Corporation, an S corporation, reports a recognized built-in gain of $80,000 and a recognized built-in loss of $10,000. Whindy holds an $8,000 unexpired NOL carryforward from a C corporation year. Whindy's ordinary income for the ..

  Record the adjusting entry for tom investments

Tom Investments invested $2,500,000 in a term deposit on January 1, 2011. Interest is paid after one year and interest rates are 8%. Record the adjusting entry for Tom Investments on 31 July 2011.

  At the beginning of 2012 the jeater company had the

at the beginning of 2012 the jeater company had the following balances in its accountscash 4300inventory 9000common

  What should company report as its deferred income tax

What should company report as its deferred income tax liability as of the end of its first year of operations.

  Casualty loss on schedule a of her tax return

Roberta owns a house in the Huntsville area. During a hailstorm in 2013 the roof on Roberta’s house is damaged. The repair cost is $4,000, none of which is covered by insurance. Roberta has no other casualty losses for the year. Roberta’s AGI is $32,..

  Found on the income statement of a manufacturer

Which of the following would not be found on the income statement of a manufacturer?

  Company does not make entries

Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31.

  Determine the maximum amount of cash the dean

The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 10 percent return on the investmen..

  Discuss reasons a consulting firm might use a normal cost

Discuss the reasons a consulting firm might use a normal costing system rather than an actual costing system. What might be some reasons for the firm to change from a one-pool to a multiple-pool allocation concept?

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