The $110.2 million lottery payment that you just won actually pays $3.8 million per year for...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66497add86384_61266497adcc00ec.jpg)
Transcribed Image Text:
The $110.2 million lottery payment that you just won actually pays $3.8 million per year for 29 years. If the discount rate is 22.50% and the first payment comes in 1 year. a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Y Present value million b. What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ EA million The $110.2 million lottery payment that you just won actually pays $3.8 million per year for 29 years. If the discount rate is 22.50% and the first payment comes in 1 year. a. What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Y Present value million b. What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Present value $ EA million
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The table contains real data. MySpace U.S. Advertising Revenue ($ millions) (a) Determine the maximum and minimum values for each variable in the table. (b) Use your results from part (a) to find an...
-
Depreciation ComputationsSYD, DDBPartial Periods Cosby Company purchased a new plant asset on April 1, 2010, at a cost of $774,000. It was estimated to have a service life of 20 years and a salvage...
-
\(34_{12} \times 7_{12}\) Perform the indicated base 12 operation.
-
Draw a graph to represent the classrooms of the elementary school in which each vertex is a classroom and an edge between two vertices indicates that there is a path between the two rooms that does...
-
Data Processors perform credit card services for banks. The company uses an ABC system. Following is information for the past year: ANALYZE INFORMATION The following questions will help you analyze...
-
What are the pros and cons of using options to compensate employees? Why would a companh choose to usr convertible bonds for financing rather than a straight bond?
-
Note: A free response paper is a short essay which conveys your reaction to article you have read.. Do a free response reflection paper on Lincoln and the Global Economy posted under Week 5....
-
1 For this task you are to write a procedure detailing how you wouldset up and operate a computerisedaccounting system This procedure is to be written to an audience who have no previous knowledge of...
-
Outline the concept of the critical path and its significance in project scheduling Explain what float (slack) is in project management. Discuss the difference between total float and free float and...
-
(8 points) Let A = [ 3 ] 9 2 6 8 and B = 7 4 Find the matrix C of the linear transformation defined by T(x) = B(Ax). C =
-
Describe six levels of structural organisation of the human body in order from the smallest structural unit to the largest.
-
Read: Kanat, S. (2019). The Relationship between Digital Game Addiction, Communication Skills and Loneliness Perception Levels of University Students. International Education Studies , 12 (11),...
-
Describe the warning signs for the seven main groups of hazardous substances defined by Classification, Packaging and Labelling of Dangerous Substances Regulations
-
On January 1, 2025, a machine was purchased for $1,060,000 by Skysong Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The...
-
Write the binomial probability in words. Then, use a continuity correction to convert the binomial probability to a normal distribution probability. P(x 110)
-
Open systems theory suggests that the external environment affects a companys ability to function. Identify any similarities between the contingency approach and open systems theory.
-
The contingency approach suggests that a firm will be more successful when what occurs?
-
If a nepotism policy were necessary, how could Syd make certain that it would not have negative effects on the organization?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App