What is the present value of your winnings

Assignment Help Financial Management
Reference no: EM131960331

You have just won the Life’s Downhill After 30 lottery. The lottery payments will be made for the next 30 years. The payments are slightly unusual in that you will be paid $360,000 every six months starting six months from today, for a total of 60 payments. You will also receive $720,000 every nine months starting nine months from today, for a total of 40 payments. When the payments coincide, for example 18 months from today, you will receive both payments. If the interest rate is an APR of 6.2 percent compounded monthly, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131960331

Questions Cloud

What is present value : An investment will pay you $19,000 in 10 years. The appropriate discount rate is 7 percent compounded daily. What is the present value?
What will motivate your customers to buy now : Why is your company uniquely posited to serve this market? Why will customers choose you rather than your competitors?
What is the value of the stock ex-rights : What is the value of the stock ex-rights? What is the amount of immediate profit you can make on ex-rights day per share?
Discuss the effects of overstating or understating inventory : Discuss the effects of overstating/understating inventory both in the year of the error and the subsequent year
What is the present value of your winnings : If the interest rate is an APR of 6.2 percent compounded monthly, what is the present value of your winnings?
Analyze your internship activities in brief : Section 3- Skill Development: In the third section of the paper (minimum 2 pages) reflect specifically on your own experience in your internship.
Define extractive institutions and analyze the role : Define extractive institutions and analyze the role these institutions play in the developing countries.
Dividends instead of pursuing their growth strategy : In other words, starting on December 31, 2016, should the company pay out all of its earnings in dividends instead of pursuing their growth strategy?
Discuss the values common to human services : In what ways could the values you have identified lead to ethical challenges for the Human Service Professional?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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