A major lottery advertises that it pays the winner $10 million. However this prize money is paid

Fantastic news! We've Found the answer you've been seeking!

Question:

A major lottery advertises that it pays the winner $10 million. However this prize money is paid at the rate of $500,000 each year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize at 10% interest compounded annually

Posted Date: May 19, 2024 03:11 PM

See More Questions

In terms of Federal tax consequences, why are lifetime transfers to charity preferable to testamentary transfers?
Write a summary of the paragraph below: Notwithstanding any other provision of law, a holder of a retail permit to sell beer and wine may transfer beer and wine to other businesses. In order for this...
From historical data, Harry's Car Wash estimates that dirty cars arrive at the rate of 10 per hour all day Saturday. With a crew working the wash line, Harry figures that cars can be cleaned at the...
Compare and contrast the four capital budgeting methods
An enterprising student has set up an internship clearinghouse for business students. Each student who uses the service fills out a form and lists up to 10 companies that he or she would like to have...
1. how do exchange rate fluctuations directly affect the bottom line (profit) of a small business, and thus present a risk to be managed? can alliance design concepts share the foreign exchange risk...
Particulars Units produced and sold Price/unit (post-additional processing) Separable processing cost Selling price/unit at split-off Ascent Bind Split 16,000 24,000 36,000 P30 P40 P56 P130,000 P25...
To what extent should a restaurant manager involve subordinate staff in the analysis of variance proce
Consider the following graph representing web page nodes and the edges (hyperlinks) connecting them. 1 5 3 4 2 6 1. Give the link probability matrix for the above graph. (10 points) 2. Let x be the...
Paine Ltd makes and sells a single product. Annual sales in units for 2017 are expected to be 200,000, and standard cost and selling price per unit is: Selling price 35 Variable costs: Materials 8...
The sales and cost data for two companies in the transportation Industry are as follows: X Company Y Company Amount Percent Amount Percent Sales $134,000 100.00 $134,000 100.00 Variable costs 80,400...
Materials should not be installed in a building if they are ______________. inefficient damp or wet unsustainable nonrenewable
Diamond Walker sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Diamond $1,500 per year. The craft...
What are the five interrelated components of internal control? Briefly discuss them.
Materiality. The next two pages are the consolidated profit and loss account (income statement) and balance sheet for Nokia, an international manufacturer of portable telephones with headquarters in...
Procedures to Obtain an Understanding and Audit Planning. On 12 March 1997, Lars Bildman, Chief Executive of Astra USA, Inc., was arrested by US federal officers and charged with 35 counts, including...

A major lottery advertises that it pays the winner $10 million. However this prize money is paid

Question:

Expert Answer:

Students also viewed these finance questions