What is the present value of myrna winnings

Assignment Help Financial Management
Reference no: EM131562724

Myrna Loy has just won a lottery. The payout is $72641 a year for 20 years. Myrna will receive the first payment in one year. If the appropriate discount rate is 10% per year with annual compounding, what is the present value of Myrna’s winnings?

Do not round at intermediate steps in your calculation. Round your answer to the nearest dollar. Enter your answer without the $ symbol.

Reference no: EM131562724

Questions Cloud

Design a human resource management strategy : Select an existing small company in an industry you are familiar with to be the basis of the small business in this case.
What is the change in the expected net interest income : Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 1 percent increase in interest rates?
Calculate the present value of the bonds : On July 1, 2010, Harris Co. issued 6,000 bonds at $1,000 each. The bonds paid interest semiannually at 5%. Calculate the present value of the bonds
Calculate the one-year liquidity index for these securities : The Acme Corporation has been acquired by the Conglomerate Corporation. Calculate the one-year liquidity index for these securities.
What is the present value of myrna winnings : Myrna Loy has just won a lottery. The payout is $72641 a year for 20 years. what is the present value of Myrna’s winnings?
How much must taraz aina pay right now in order : How much must Taraz Aina pay right now in order to completely satisfy her obligation under this loan
Solve each system of equations by sketching the graphs : Use the slope and the y-intercept or both intercepts. Estimate each result to the nearest 0.1 if necessary.
Annual worth of machine at its optimal economic service life : what is the Annual Worth of the machine at its optimal economic service life?
Best exemplifies unsystematic risk : Which one of the following best exemplifies unsystematic risk?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the current market value of the company stock

Determine the current market value of the company’s stock if the required rate of return is 9 percent.

  The current value per share of corporation stock

XYZ Corporation has 1 million shares of stock outstanding and has annual income of $8 million. The company has no expansion opportunities and depreciation equals the replacement cost necessary to maintain operations. Therefore income is available to ..

  Calculate the current price of value bond

Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 16 years remaining to maturity, and has a current yield to maturity (discount rate) of 11 percent.

  What should be the current price of the bond

What should be the current price of the bond, assuming that the required annual return on the bond is 10 percent?

  Clothing is expecting to pay an annual dividend

Rubenstein Bros. Clothing is expecting to pay annual dividend per share of $1.2 out of annual earnings per share of $3.75. What is the stock's required return?

  Calculate the expected rate of return on the market

Use the CAPM to calculate the market risk premium and the expected rate of return on the market.

  Why is an appraisal important when buying a home

Why is an appraisal important when buying a home? and What are some of the costs associated with buying a home? What are some of the other fees and charges that get added to a home loan on top of the interest we pay? Please provide examples?

  Deposits numerous checks worth an average combined

On any given day, a firm receives and deposits numerous checks worth an average combined total of $9,215.

  Traditional brick and mortar retailers are converging

Pure play Ecommerce sites will continue to outpace traditional stores and diverge not converge with brick and mortar. Many well respected individuals believe that Ecommerce and traditional brick and mortar retailers are converging. Discuss and ask qu..

  Results of fed reducing rates-dropping carrying costs

How do you calculate your EOQ if your holding cost is zero. Our company is non profit and does not track holding cost. But I am interested in calculating the ordering quantities so we can carry the most efficient amount. If carrying costs are 5%, wha..

  What is the probability distribution

Assume that the expected return µ from the stock is 20% per annum and its volatility is 40% per annum.- What is the probability distribution for the continuously compounded rate of return of the stock over 2 years?

  Calculate accumulated depreciation over six years

Genetic Insights Co. purchases asset for $11,271. This asset qualifies as seven-year recovery asset under MACRS. Calculate accumulated depreciation over 6 years

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