The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire.
Fantastic news! We've Found the answer you've been seeking!
Question:
The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.32 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $66,000 each.
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
1. If Mr. Ormsby can invest money at a 8% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.)
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date: