You have won the lottery. You will receive $5 million today, and then receive 40 payments of
Question:
You have won the lottery. You will receive $5 million today, and then receive 40 payments of $2.1 million. These payments will start one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $50 million. If the appropriate discount rate is an APR of 6 percent compounded daily, should you take the offer? Assume there are 12 months in a year, each with 30 days.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (7 reviews)
Concerning taking the offer I can say that you are right because you have won the lottery What is m...View the full answer
Answered By
James Warinda
Hi! I’m James Otieno and I'm an experienced professional online tutor with countless hours of success in tutoring many subjects in different disciplines. Specifically, I have handled general management and general business as a tutor in Chegg, Help in Homework and Trans tutor accounts.
I believe that my experience has made me the perfect tutor for students of all ages, so I'm confident I can help you too with finding the solution to your problems. In addition, my approach is compatible with most educational methods and philosophies which means it will be easy for you to find a way in which we can work on things together. In addition, my long experience in the educational field has allowed me to develop a unique approach that is both productive and enjoyable.
I have tutored in course hero for quite some time and was among the top tutors awarded having high helpful rates and reviews. In addition, I have also been lucky enough to be nominated a finalist for the 2nd annual course hero award and the best tutor of the month in may 2022.
I will make sure that any student of yours will have an amazing time at learning with me, because I really care about helping people achieve their goals so if you don't have any worries or concerns whatsoever you should place your trust on me and let me help you get every single thing that you're looking for and more.
In my experience, I have observed that students tend to reach their potential in academics very easily when they are tutored by someone who is extremely dedicated to their academic career not just as a businessman but as a human being in general.
I have successfully tutored many students from different grades and from all sorts of backgrounds, so I'm confident I can help anyone find the solution to their problems and achieve
0.00
0 Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Business questions
-
You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 30 years, which will increase 5 percent per year. If the appropriate discount rate is 8 percent,...
-
You have just won the lottery and will receive $1,500,000 in one year. You will receive payments for 30 years, and the payments will increase by 2.5 percent per year. If the appropriate discount rate...
-
You have just won the lottery and will receive $1,500,000 in one year. You will receive payments for 30 years, and the payments will increase by 2.7 percent per year. If the appropriate discount rate...
-
First United Bank Inc. is evaluating three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Instructions 1. Assuming...
-
A political candidate, Bill McWaffle, is personally indifferent on the issue of the legalization of gambling in his state and to this point has not taken a public stand. The election is fast...
-
Hearsay is literally what a witness says he or she heard another person say. What makes the admissibility of such evidence potentially unethical?
-
Paired data are data for which each value in one sample can be matched with a corresponding value in another sample. In Exercises 5 and 6, determine whether the statement is true or false. If the...
-
Wyco Park, a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2019. Instructions (a) Determine Wyco Park's net...
-
Apricotte produces highly specialized software for the specific needs of large multinational corporations. The corporation considers a project to start a business in hardware. The anticipated project...
-
Control is a key issue for international companies, and the approaches used for decision making and reporting can have important implications for the effectiveness of strategy implementation and the...
-
In March 2020, Ireland-based Kerry Group announced plans to spend $125 million to expand production at its Georgia plant. The new investment would allow Kerry to double production at the plant,...
-
On September 1, 2021, Susan Chao bought a motorcycle for $35,000. She paid $4,500 down and financed the balance with a five-year loan at an annual percentage rate of 6.8 percent compounded monthly....
-
Implement the half-adder of Fig. 15.3 using only (a) NAND gates; (b) NOR gates. x ty (x+yxy) xy The half-adder
-
What is the nature of the fundamental difference between standard costs for direct materials and labour and standard manufacturing overhead costs?
-
The euro-zone is sometimes referred as a DM-zone (the Deutsche mark being the former currency of Germany); explain.
-
What is the significance of the term variance relating to standard costing? What types of variances are computed for (a) materials, (b) labour, and (c) factory overheads?
-
What is the difference between a forward and a nondeliverable forward contract? For which currencies are nondeliverable forward contracts usually traded?
-
Certain ratios are very important in connection with budgetary control and standard costing. What are these ratios? State the application of such ratios.
-
Show that, for an ideal gas, Where P is the pressure, r is the mass density, and vrms is the rms speed of the gas molecules. P= pv ms rms
-
Show that every group G with identity e and such that x * x = e for all x G is abelian.
-
Suppose a companys operating cash flow has been negative for several ye running. Is this necessarily a good sign or a bad sign?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Water flows through a pipe section that tapers from an internal diameter of 200 mm down to 100 mm over a distance of 1 m. Determine the pressure drop over the section for a flow of 0.06 m3s-1. The...
-
Calculate the binding energy per nucleon for Be, 59 Co, 208 pb, and 195 pt. (For the atomic masses, see this table. Enter your answers to at least two decimal places.) (a) Be MeV/nucleon 59 Co...
-
A.Final ProjectTeamProjectCustom Schema: 200 points Extra Credit Group of 3 people : Designer and Developer ( ERD, tables, data ) Team Leader/Power User ( Business Questions/Queries, Real Life...
Study smarter with the SolutionInn App