Ignoring inflation and risk

Assignment Help Accounting Basics

Reference no: EM131091383

You have just won the lottery and you have a choice between accepting $5,000 now; $8,000 in ten years; or $1,000 at the end of the year for the next six years. The relevant interest rate is 5%, compounded annually. Ignoring inflation and risk, which option is most attractive?

Reference no: EM131091383

Questions Cloud

Succession planning procedure : In a minimum of 500 words, document a succession plan for the leader (e.g., CEO) of a CASINO. Be sure to address the following questions in your response:

Is it monopolistic competition-oligopoly and monopoly : How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this i..

What is the optimal value of current consumption : U space equals space ln space c space plus space left parenthesis 0.25 right parenthesis space ln space c apostrophe and the budget constraint: What is the optimal value of current consumption c*?

Four of hired hands are experienced at workig on trail : The Flulkert family is large and they have seven hired hands. The familiy has a total of about $20 per week for available salaries. Four of the hired hands are experienced at workig on the trail. What should each weekly pay rate be? Suggest three pos..

Ignoring inflation and risk : You have just won the lottery and you have a choice between accepting $5,000 now; $8,000 in ten years; or $1,000 at the end of the year for the next six years. The relevant interest rate is 5%, compounded annually. Ignoring inflation and risk, wh..

Policy implications regarding the public health issue : Create a PowerPoint presentation in APA format consisting of 12-15 slides, not including the title page, overview, and reference pages. You must provide a minimum of five references. References must be current (no older than five years). The prese..

Examples from the handouts : Freud says "Dreams are the road way to unconscious". For example a child wishes to get highest marks in a school test but he couldn't ___ so he dreams at night that his teacher was appreciating him on getting very good marks, in this way his uncon..

Negotiable instruments are transferred every business day : Negotiable instruments are transferred every business day of the year. Make a checklist for the potential buyer or holder of a negotiable instrument. Remember they are going to give something of value in return for this document and they don't want t..

Difference in second-party payment and third-party payment : Discuss the difference between second-party payment and third-party payment in regards to insurance companies.

User Account

All Pages