What is future value of her winnings at time of payment

Assignment Help Financial Management
Reference no: EM13878206

A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year?

Reference no: EM13878206

Questions Cloud

Using the free cash flow valuation model : Which of the following is the appropriate way to calculate the price of a share of a given company using the free cash flow valuation model?
Develop a public interest case for the regulation of barbers : If a regulatory agency determines electric prices on the basis of a fair rate of return on investment," how might its price-setting standard affect the use of fuels in producing electricity? Would fuel oil producers favor the fair-rate-of-return m..
What is the value of this company stock : Dream flower is a new company listed on NY Stock Exchange. The company today announced dividend of $2.00 (Dividend in year 0). Investors expect that dividend will grow at 6% annually for 10 years. The dividend growth rate from year 11 will be reduced..
Determine the maximum weight of the bucket : Determine the maximum weight of the bucket that the wire system can support so that no single wire develops a tension exceeding 100lb.
What is future value of her winnings at time of payment : A lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year?
Compute the net present value of the new machine : Compute The net present value (NPV) of the new machine and The effects on the cash flow each year, including year 0, if the new machine is purchased.
Analyse data which involves analysing the traffic volume : To analyse the data (In traffic congestion) which involves analysing the traffic volume, travel time and speed, mapping areas of high congestion using Multiple ring buffer analysis.
Three phase synchronous motor : Explain the methods of starting a three phase synchronous motor and the effects of variation of excitation with reference to the 'V' curve charecteristic
Variance on portfolio that is made up of equal investment : Stock X has an average realized return of 24.8% and stock Z has an average realized return of -3.1%. The variances for stock X and stock Z are 0.125447467 and 0.032239975 respectively. Covariance is 0.045469287. The variance on a portfolio that is ma..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the effective interest cost to the borrower

John wants to buy a property for $105,000 and wants an 80% loan. The lender indicates that a fully amortizing loan can be obtained for 30 years at 12% MEY, with loan origination fees (all lender controlled fees) of $3,500. What is the effective inter..

  Compute the cost of each capital component

Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the CAPM method.

  What is the nominal and effective cost of trade credit

What is the nominal and effective cost of trade credit under the credit terms of 3/10, net 40? Assume 365 days in a year for your calculations.

  Bonds outstanding with coupon rate

Union Local School District has bonds outstanding with a coupon rate of 3.6 percent paid semiannually and 17 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the price of the bon..

  Risk-free rate of return and expected return on the market

The beta of M Simon Inc., stock is 1.3, whereas the risk-free rate of return is 0.08. If the expected return on the market is 0.14, then what is the expected return on M Simon Inc?

  Discuss specific challenges that you may have experienced

determine the primary manner in which orion has increased your business knowledge in the related subject area.discuss

  How you make or lose money by taking naked position on one

Explain the advantages and disadvantages to entering into a forward contract, and how you make or lose money by taking a naked position on one. Discuss issues of liquidity and your ability to tailor the contract to your needs in terms of delivery dat..

  The book is financial management for public health and

the book is financial management for public health and not-for-profit organization third edition by steven a.

  Determine the expected tail loss

Determine the Value-at-Risk (VaR), denominated in Australian dollars, for the portfolios provided - Determine the Expected Tail Loss (ETL), denominated in Australian dollars, for the portfolios provided below using the results from

  To hedge long position in put option you need

To hedge a long position in a put option you need to:

  What the pension fund should be to finance our retirement

We want to retire in 30 years, and we shall need $50,000 income per annum during our retirement which wills last 20 years. We can save $10,000 annually during the first 10 years. We would like to know what the pension fund should be to finance our re..

  What is the operating cash flow in each of the three periods

You are considering investing in a project that is a cost cutting proposal. additional net revenues from the project are expected to equal $83.33 for each of the three years of the project life. The process has an initial cost of $125 and will be dep..

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