Solution-Paid in four annual payments

Paid in four annual payments

Reference no: EM131627573

Import Cars is planning a big party to highlight the new models for the next year. They are considering offering a $5,000 grand prize to one lucky winner. $1,000 will be paid on the day of the drawing. The remaining $4,000 will be paid in four annual payments of $1,000 starting 1 year after the drawing. How much is this prize really worth at a 6 percent rate of return?

Reference no: EM131627573

Questions Cloud

Calculate the accounting rate of return : Given the following information calculate the Accounting Rate of Return (ARR gross).

How would you react as a consumer : Research a company who made a serious error on social media. Explain what the error was and the repercussions it had.

Calculate the annual equivalent : Calculate the Annual Equivalent (AE). Your textbook calls this EAV, Equivalent Annual Value. Calculate to the nearest dollar.

What are the three basic forms of tangible investments : What are the three basic forms of tangible investments? Briefly discuss the investment merits of tangibles. Be sure to note the key factors.

Paid in four annual payments : The remaining $4,000 will be paid in four annual payments of $1,000 starting 1 year after the drawing. How much is this prize really worth at a 6 percent rate

Determine the best possible pricing strategy : Determine which tools of the marketing mix available to health care providers would be most effective for the health care provider you selected.

Cons of each alternative in areas such as personal liability : What business form will be the best one for John. Why. Please consider all alternatives and discuss pros and cons of each alternative in areas such as personal

Topic - advantages of using social networks in business : Literature Review - Topic: Advantages and Disadvantages of Using Social Networks in Business

Calculate the npv of a project : Calculate the NPV of a project that has an outlay of $300,000 and has annual net cash flows of $50000 per year over 9 years.

User Account

All Pages

Paid in four annual payments

Reference no: EM131627573

Reference no: EM131627573

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Calculate depreciation expense for year 3

Relationship among maturity of financial institutions assets

Ivey case study part king inc

Which scenario might prompt hamilton to bypass

What is the internal rate of return on this project

If sales in 2010 were 12 million sales in 2011 were 13

The firm maintains its all-equity status

Critical self-reflection essay

Impact the budget deficit and the national debt

The bitter almond company was confronted with the two

Difference between the price that the bond is going

Increased price volatility affected financial innovation

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT