If you were to win the lotto for 100mil today and were given an option to...
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If you were to win the lotto for 100mil today and were given an option to receive 5.5m for 25 years. Given that interest is currently doing at 3%, which option will you choose? Provide a comparative table demonstrating the computation for both options. A. Receive lump sum or by installment? B. should you choose to receive in lumpsum, the government will require you to pay a 25% tax on the proceeds. If by installment, the government will levy only 20% for all your receipts. 2. Since you are very adept in gambling and have been trying to win the lotto for the last 5 years where the chances of winning as very slim. You thought of trying your luck in bitcoin. It was said it can provide you a return of 33% month on month (with a standard deviation of 97% of not happening most of the time). Will you now get your 100m (whatever the value after tax) and invest in bitcoin? Or retain your previous decision? What can prevent you from investing in bitcoin? Demonstrate your computation in a table. If you were to win the lotto for 100mil today and were given an option to receive 5.5m for 25 years. Given that interest is currently doing at 3%, which option will you choose? Provide a comparative table demonstrating the computation for both options. A. Receive lump sum or by installment? B. should you choose to receive in lumpsum, the government will require you to pay a 25% tax on the proceeds. If by installment, the government will levy only 20% for all your receipts. 2. Since you are very adept in gambling and have been trying to win the lotto for the last 5 years where the chances of winning as very slim. You thought of trying your luck in bitcoin. It was said it can provide you a return of 33% month on month (with a standard deviation of 97% of not happening most of the time). Will you now get your 100m (whatever the value after tax) and invest in bitcoin? Or retain your previous decision? What can prevent you from investing in bitcoin? Demonstrate your computation in a table.
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Here is my recommendation with comparative tables A Lump sum vs installment Option Amount Received T... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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