Question: You won a 5 0 , 0 0 0 prize You will recieve 1 0 , 0 0 0 immediately and the remaining 4 0

You won a 50,000 prize You will recieve 10,000 immediately and the remaining 40,000 will be paid out in equal annual installments over the followjng 10 years startinf one uear from today, if ghe appropriate discount rate is12% how much is this prize worth today?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Shelly, please find questions attached. Due in 5 hours. Let me know if you can finish it. ' Ohmme File Edi'l View History Bookmarks Peapla Winduw Help C I G)...

Q:

AutoSave OFF A@@ycg .. 2022 Office Assignment (1) (1) ) ( Q Q go Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Arial 10 v LG = = = no ab Wrap Text General Ayu Or 0...

Q:

I have some questions cannot solutioncan you help me 1 2 3 4 5 Student ID Student Name Time Value of Money (65%) DRAFT AREA PLEASE ENTER YOUR RESULTS INTO YELLOW CELLS & SHOW ALL WORKING IN THE DRAFT...

Q:

Shift Determination Full Time (8 Hour) Shifts F01 8:00am to 9:00am 9:00am to 10:00am 10:00am to 11:00am 11:00am to 12:00pm 12:00pm to 1:00pm 1:00pm to 2:00pm 2:00pm to 3:00pm 3:00pm to 4:00pm 4:00pm...

Q:

Project NPV ( S 6 . 3 ) A widget manufacturer currently produces 2 0 0 , 0 0 0 units a year. It buys widget lids from an outside supplier at a price of $ 2 a lid. The plant manager believes that it...

Q:

A company borrowed 4 , 5 0 0 , 0 0 0 TL annually for 1 0 years with an annual capital cost of 4 5 % for investment. With the investment made, 1 8 0 0 , 0 0 0 units will be produced annually. After...

Q:

Strods Company set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May. May 1 Prepared a company check for $ 4 5 0 to...

Q:

Current Balance Template Page 2 of 4 CURRENT APPARENT WEIGHT MAGNETIC FORCE (Amperes) (Newtons) Newtons O. S A JOSS N 0. 32 5 0. 8 AT 1. SS N D. ANN 1. 0 A 1. SS N OrSON 1. 3 A 1. SAN . 6 A 1. SAN 0...

Q:

Just post picture before the table we have to used the table to answer all.questions. Worksheet 24 A Closer Look at Sampling Worksheet 24 (continued) Riddle: How are minds like parachutes? 5. Suppose...

Q:

Conditional Probability in Decision Trees In Module Five, our exercise is building on what you have learned in prior modules. The three reference videos for probabilistic top-down tree modeling are...

Q:

Part A You need to consider that you are working in a team with two to four people (minimum three including yourself). Your task is to identify, establish and document your team s purpose, roles,...

Q:

Which of the following statements is true about meiosis? O a. Meiosis I produce four identical cells that have half set of chromosomes O b. Meiosis I produce two different cells that have half set of...

Q:

What is the general term for a person who holds things in trust for others? 1 . An insurance agent 2 . The executor of an estate 3 . A fiduciary 4 . A person who has power of attorney

Q:

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...

Q:

How do you think this fact affects the types of mortgages offered by Canadian banks? (Hint: Think about interest rate risk.) LOP8

Q:

6. Canada does not have institutions like Fannie Mae and Freddie Mac that securitize mortgages. LOP8

Q:

5. Suppose Hibbards Finance Company raises most of its funds by issuing long-term bonds. It uses these funds for floating-rate loans. LOP8