You win a lottery with a prize of $1.5 million. unfortunately the prize is paid in 10 equal annual installments. the first payment is next year. how much is the prize really worth? the discount rate is 8 %.

Answers

Answer 1

Answer:

PV= $1,006,512.21

Explanation:

Giving the following information:

Annual payments= $150,000

Discount rate= 8%

Number of periods= 10 years

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {150,000*[(1.08^10) - 1]} / 0.08

FV= $2,172,984.37

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 2,172,984.37/(1.08^10)

PV= $1,006,512.21


Related Questions

When the mortgage rates get high, the housing market will collapse, as fewer people will take loans for buying houses because of higher interest rates, and this will result in a

Answers

Loss in profit for the housing market.

A customer value proposition is developed through an effective marketing mix that communicate about what to the customer?

Inexpensive product offerings

O Recommendations from previous customers

O Fairness towards customers

O Benefits that satisfy needs

Confidence Level

Rate your confidence to submit your answer.

High

Answers

Answer: benefits that satisfy needs

Explanation:

A customer value proposition has to do with the value that an organization promise to give an individual if the Individual buys a certain product from them.

A customer value proposition is developed through an effective marketing mix that communicate about benefits that satisfy needs.

Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money? the real interest rate that would have been earned on the money the implicit cost of the money the nominal interest rate that would have been earned on the money There is no cost.

Answers

Answer:

The nominal interest rate that would have been earned on the money

Explanation:

Opportunity cost or implicit cost is the cost of the option forgone when one alternative is chosen over other alternatives.

If i lend a friend money, i would be forgoing earning interest on my money. This is my opportunity cost. Interest earned is nominal interest

Nominal Interest = Real interest rate + inflation rate

Marlon had $22,000 of taxable income in 2018. Based on the table, how much federal income tax will Marlon owe in 2018?

Marginal Tax Rates,
2018
10% on the first $9,525 of income
12% on taxable income over $9,525 to $38,700
22% on taxable income over $38,700 to $82,500
24% on taxable income over $82,500 to $157,500
32% on taxable income over $157,500 to $200,000
35% on taxable income over $200,000 to $500,000
37% on taxable income over $500,000

Answers

Answer:

The federal tax income that Marlon will owe in 2018 is $2,449.5

Explanation:

Based on the effective tax rate, we have;

Marginal Tax Rates,

10% on the first $9,525 of income

12% on taxable income over $9,525 to $38,700

22% on taxable income over $38,700 to $82,500

Therefore, we have;

The tax amount for the first $9,525 of income = 0.1×$9,525 =  $952.5

The 12% on taxable income over $9,525 to $38,700 is given as follows;

$22,000 - $9,525 = $12,475

The tax amount for the taxable income over $9,525 to $38,700 is therefore;

Tax amount = 0.12 × $12,475 = $1,497

The total tax is therefore;

$1,497 + $952.5 = $2,449.5

The federal tax income that Marlon owe in 2018 = $2,449.5.

Answer:

$2,449.50

Explanation:

Just took the exam.

1) Take 10% of the first $9,525 = $952.50

2) $22,000 - $9,525 = 12,475

3) 0.12 × $12,475 = $1,497

4) $1,497 + $952.50 = $2,449.50

5) Marlon will owe $2,449.50 in 2018

Debt that is callable by the creditor in the upcoming year, but is not expected to be called, is reported as

Answers

Answer: current liability

Explanation: Callable debts are simply called bonds (an investment instrument whereby an individual or investor loans a certain amount to an organization in other to finance a project or business that yields profit) which the creditor or issuer call of or terminate a bond before it reaches maturity usually due to decline or decrease in the interest rate on investment, which could have fallen below or seem illogical given the Interst rate in the bond. As such, bonds which are Callable are reported as current liabilities even when they are not expected to be called as current liabilities should include all of an organization's debt or liabilities which should be cleared within 12 months(current fiscal year).

A new per unit tax on yacht production decreases the supply of yachts. If yachts are elastically demanded, what will happen to total revenues from yacht production?

Answers

Answer:

Total revenue would fall

Explanation:

The decrease in the supply as a result of the unit tax would lead to an increase in the price of yacht.

Since the demand for yacht is elastic, the demand for yacht is sensitive to price. As a result of the rise in price, the quantity demanded of yachts would fall. As a result, total revenue would fall

Elastic demand means that quantity demanded is sensitive to price changes. A small change in price would lead to a greater change in quantity demanded.

An extended warranty contract (Select all that apply.) provides protection beyond the manufacturer's original warranty. is considered an integral part of the related product. essentially constitutes a separate performance obligation.

Answers

Answer:

provides protection beyond the manufacturer's original warranty.

essentially constitutes a separate performance obligation.

Explanation:

An extended warranty contract can be defined as an elongation of the coverage period on a service agreement between a manufacturer and the customer.

An extended warranty contract;

1. provides protection beyond the manufacturer's original warranty.

2. essentially constitutes a separate performance obligation.

Adam, dianna, and loretta are engaged in a business partnership to develop 100 acres of vacant land into a residential upscale-gated community. their development project did not go as planed due to the economic and market conditions and they want to determine their rights. they are familiar with the court system and their option to file a lawsuit against each other but they fill it will be intrusive and may destroy their friendship or have other improper results. what can they do under these circumstances?

Answers

Answer: Based on the scenario, they can find alternatives which they'll use to resolve the issue rather than going to court. They can use the arbitration or get the meditator to help them out.

Explanation:

From the question, we are informed that Adam, Dianna, and Loretta are engaged in a business partnership to develop 100 acres of vacant land into a residential upscale-gated community but that their development project did not go as planed due to the economic and market conditions and they want to determine their rights.

We are further told that they are familiar with the court system and their option to file a lawsuit against each other but they fill it will be intrusive and may destroy their friendship or have other improper results.

Based on the scenario, they can find alternatives which they'll use to resolve the issue rather than going to court. They can use the arbitration or get the meditator to help them out. This will help them in resolving the issue and at the same time, keep their friendship.

Henly Company enters into a contract to transfer a product to Propel Inc. On July 31, 2019. It is agreed that Propel will pay the full price of $10,000 in advance on April 15, 2019. Henly delivers the product on July 31, 2019. The cost of the product is $7,500. Requirement: What journal entries are required in 2019?

Answers

Answer and Explanation:

The journal entries are shown below:

1. No journal entry should be recorded for entered into a contract

2. On April 15

Cash Dr $10,000

      To Unearned sales revenue $10,000

(Being advance is recorded)

3. On July 31

Unearned Sales Revenue $10,000

         To Sales Revenue        $10,000

(Being the unearned sales revenue is recorded)

Cost of Goods Sold   $7,500

         Inventory              $7,500

(Being the cost of a product is recorded)

what are the three types of inherent value money can have

Answers

Answer:

commodity value, representative value, and also fiat value.

The three types of inherent value money can have is

commodity value representative value fiat value.

What is Money?

Money is referred to as an exchange medium with the help of which purchasing and selling are made. This money comes in the form of currency which is paid by an individual while making purchases.

In ancient times when currencies are not developed people used a barter system in order to purchase things. For example, they can sell their livestock in order to buy food. The exchange can also be done in metals or precious stones.

The money which has intrinsic value in the market is referred to as commodity money. Fiat money is referred to as money which y was given legal standing in the market without any obligations.

The representational worth of the money that is traded in response to a particular commodity's demand which indicates its real worth in teh market.

Learn more about Fiat Money, here:

https://brainly.com/question/14136478

#SPJ2

If a firm's fixed assets turnover ratio is significantly higher than its industry average, this could indicate that it uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets.
a) true
b) false

Answers

Answer:

a) true

Explanation:

If a firm's fixed assets turnover ratio is significantly higher than its industry average, this could indicate that it uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets.

Fixed asset turnover ratio can be defined as an efficiency ratio which gives the ratio of sales to the value of fixed assets owned by an organization.

Generally, it is calculated by dividing an organization's net sales by its net assets such as equipment, factory, and property. However, the fixed assets equals the fixed asset minus depreciation. When the fixed assets turnover ratio is high, it simply means that the organization is efficiently using its fixed assets to improve or generate more sales and vice-versa.

On June 1, 2016, Enne Brahtz Corporation received $3,600 as advance payment for 12 months' advertising. The receipt was recorded as a credit to Unearned Fees. What adjusting entry is required on December 31, 2016?

Answers

Answer:

Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800

       To Advertising revenue $1,800

(Being the adjusting entry is recorded)

Explanation:

The adjusting entry is shown below;

Unearned Fees ($3,600 × 6 months ÷ 12 months) $1,800

       To Advertising revenue $1,800

(Being the adjusting entry is recorded)

Here we debited the unearned fees as it decreased the liability and credited the advertising revenue as it increased the revenue account

The six months could be computed from June 1 to December 31

The adjusting entry for the transaction includes Debit to Unearned Fees $1,800 and Credit to Advertising revenue $1,800.

Date  Account titles and Explanation    Debit   Credit

          Unearned Fees                              $1,800

          ($3,600 × 6 months/ 12 months)

                   To Advertising revenue                     $1,800

            (Being the adjusting entry is recorded)

In conclusion, the adjusting entry for the transaction includes Debit to Unearned Fees $1,800 and Credit to Advertising revenue $1,800.

Read more about Journal entry

brainly.com/question/14279491

Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning economy, capital flows efficiently from those with surplus capital to those who need it. Transfers can take place in 3 ways: -Select- transfers without going through any type of financial institution, -Select- transfers through investment banks that underwrite the securities, and indirect transfers through financial -Select- that create new forms of capital.

Answers

Answer:

1. Transfers without going through any type of financial institution - DIRECT TRANSFER

Direct transfer of funds refers to the scenario where the people who have surplus capital are able to get it to those who need it directly without the use of an intermediary.

2. Transfers through investment banks that underwrite the securities, and indirect transfers through financial ... - INDIRECT TRANSFER

When the funds flow through an intermediary such as an Investment bank or other financial institutions, the transfer is indirect.

3. INTERMEDIARIES that create new forms of capital.

Intermediaries take the surplus capital from those who have it and then create new forms of capital such as loans and equity investments to enable them pass the funds to those who need it.

International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.


True False

Answers

Answer: True

Explanation:

International trade is simply exchange of goods and services that take place between countries. It should be noted that gloabl trading gives the countries and the consumer opportunity through which they're exposed to the produfte that they don't have in their countries.

International trade-dependent jobs have grown at a rate three times the growth of U.S.-dependent jobs.

This is True

What is an advantage of a Limited Liability Company?

Answers

Answer:

llc ,No restrictions on the number of members allowed

pass through taxation

Which pricing method adds the same fixed dollar amount to all medicines, regardless of ingredient costs

Answers

Answer:

the markup method

Explanation:

Note that the markup pricing method typically involves adding a fixed amount of cost of the product is added to the product’s price.

So, in the pricing method of medicines, a fixed dollar amount is added to all medicines, regardless of ingredient costs, and this amount is called the margin.

Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year? $32,000 $38,000 $54,000 $62,000

Answers

Answer:

$30,000

Explanation:

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

In order to attend college, i would have to give up working. My opportunity cost is what i would have earned if i was working. This is $30,000.

Explicit cost is the cost actually incurred in carrying out an activity. Here, it is the total amount expended in attending college = $24,000 + $8,000 = $32,000

You are a member of a project team revising your company’s ethics policy. The team has representatives from four divisions: Software Engineering, Business Systems, Demand Planning, and Corporate Communications. You are the Corporate Communications representative and the team’s leader. Audra, a member of the project team, comments that the team is not performing as well as it could. Then she suggests that the team review a new draft of the ethics policy. She believes the policy will have positive effects on the team and on the organization as a whole. What is the most important message your colleague is trying to deliver?

Answers

Answer: ) She wants to present a new draft for a new policy.

Explanation:

The options to the question are:

A) She wants to present a new draft of the ethics policy.

B) The other members of the team are ineffective.

C) She is concerned that her work isn’t being valued.

The most important message that my colleague is trying to deliver is that she wants to present a new draft for a new policy.

This can be seen from the passage where she suggested that the team should review a new draft of the ethics policy. She further highlighted the reason for that and she said she believes the policy will have positive effects on the team and on the organization as a whole.

If the purpose of your message is to ask local businesses to sponsor your event, your desired outcome would most likely be

Answers

Answer:

the business will provide finance for the event

Explanation:

When messages are sent to business, local or international, to sponsor events, it is more often than not thought to be a request fro financial backing or financial muscle for the event. For this reason, the business being courted does not involves itself in the event but rather provides financial aid and maybe send out company representatives to see the event if necessary.

Cheers.

You work as the sales manager for a company that sells office supplies to businesses of all sizes.Because the profit margins are razor-thin,you need to ensure that you are getting the very best prices on paper,pencils,pens,Post-It Notes,and other office supplies from the manufacturers.When reviewing the quarterly profit statement,you realize that your costs are higher than they should be,and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices.When you conduct your research to determine the reason for the higher costs,and take action to bring those costs back down,in which of the key management processes are you taking part?
A) planning
B) organizing
C) leading
D) controlling
E) mentoring

Answers

Answer:

E) Mentoring

Explanation:

Since they are looking into something.

Products are invented and revised by which department? Marketing Production Research and Development Finance

Answers

Answer:

Research and Development

Explanation:

Research and Development department is responsible for the new product development and any kind of modifications in the products. This department is responsible for investigation done by the organisation to improve the existing products and developing of new related products. Nowadays companies are more amounts for Research and Development, then only the organisation can survive in the market. The department aims to make new ideas, information and technology that improves the products effectiveness.

During 2019, Rainbow Umbrella Corp. had sales of $820,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $575,000, $90,000, and $160,000, respectively. In addition, the company had an interest expense of $100,000 and a tax rate of 21 percent. (Assume that interest is fully deductible.) Suppose the company paid out $57,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the net new long-term debt?

Answers

Answer:

$2000

Explanation:

The computation of the net new long term debt is shown below:

Before that we need to do the following calculations

Sales $820,000

Less:

Cost of Goods sold $575,000

administrative and selling expenses $90,000

Depreciation $160,000

EBIT -$5,000

less: Interest $100,000

Taxable income –$105,000

Taxes (21%) 0

Net income -$105,000

Now Operating cash flow is

= EBIT + Depreciation -Taxes

= -$5,000 + 160,000 - 0

= $155,000

As we know that

Change in NWC = Net capital spending = Net new equity = 0

Cash flow from assets = OCF – Change in NWC – Net capital spending

where,

Cash flow from assets is

= $155,000 - 0 - 0

= $155,000

Cash flow to stockholders is

= Dividends - Net new equity

= $57000 - 0

= $57000

Cash flow to creditors = Cash flow from assets - Cash flow to stockholders

= $155000 - 57000

= $98,000

Cash flow to creditors = Interest - Net new LTD

Net new LTD = Interest - Cash flow to creditors

= $100,000 - 98,000

= $2000

What is an Incentive?

Answers

Answer:

It gives u a motive to do something

Explanation:

Like sometimes work places give incentives like a raise if you do your job better

An object, valuable item, desired action, or event is referred to as an "incentive" if it prompts an employee to engage in more of the activity that the employer wanted them to by way of the selected incentive.

What is a good incentive for employees?

Cash presents and experiences are the top three rewards. Gifts can include things like electronics, ride-share credits, and gift cards. Perks like tickets to concerts, festivals, and sporting events are examples of experiences. Your incentives must inspire employees.

When it comes to employees, incentives and rewards at work are advantageous to both workers and employers. Employee morale, job satisfaction, and motivation to help organizations achieve their objectives can all be improved by praising employees for their performance and productivity.

Learn more about Incentives here:

https://brainly.com/question/13037087

#SPJ2

Question in picture.

Answers

I’d say it’s the 4th one.
it is most definitely the 4th one.

Nicole Boyd, an HR manager, had been receiving many complaints about production managers who were rejecting work-from-home requests from their subordinates. Nicole reviewed the situation and evaluated the performance of those who had made the request. She selected those employees whose work required minimal feedback and then took up their case with the production managers, providing evidence of the employees' high-quality work. Nicole's action helped the employees and production managers come to an agreement which enabled the employees to work from home three days a week. Nicole's act of confronting her managers with an issue faced by the employees reflects the _____ role of an HR official.

Answers

Answer:

Nicole's act of confronting her managers with an issue faced by the employees reflects the _reconciliatory____ role of an HR official.

Explanation:

Nicole as the Human Resources (HR) manager plays a critical role in the organization.  This is moreso when there are disagreements among the employees and their production managers.  It is his intervention and reconciliatory action that will enable the employees to reach agreement with their productions and vice versa on the way forward in any issue in order to achieve some balance in workplace human relationships.

Select the qualification that is best demonstrated in each example. Carmen is a Parts Salesperson who has a professional attitude and speaks well to customers. Norma is a Farm Equipment Mechanic who is good at identifying why a piece of machinery is not working. Everett is an Agricultural Equipment Operator who works well alone and stays focused.

Answers

Answer:

its communication skills   Problem-solving skills       independence

Explanation:

Carmen: Demonstrates excellent communication skills and professional attitude.

Norma: Demonstrates strong problem-solving skills and expertise in diagnosing mechanical issues.

Everett: Demonstrates the ability to work independently and maintain focus on the task at hand.

What are communication skills?

Communication skills refer to the ability to convey information effectively and efficiently through verbal and nonverbal means. These skills include listening, speaking, writing, and presenting in a clear, concise, and compelling manner.

Good communication skills also involve being able to tailor the message to the audience and being able to understand and interpret the messages of others.

Other important communication skills include the ability to ask good questions, provide feedback, resolve conflicts, and build relationships. Effective communication is essential in both personal and professional settings and is a key component of success in many areas of life.

Learn more about communication skills here:

https://brainly.com/question/11871818

#SPJ2

o
A command economy tends to exist under a
democratic government that provides little regulation.
socialist government that provides some regulation.
representative government that provides no regulation.
communist government that provides a lot of regulation.

Answers

The correct answer is D. Communist government that provides a lot of regulation.

Explanation:

In a command economy, the economy is not controlled by the relations of supply/demand or by individual decisions to produce/buy/sell products. Instead, these aspects of the economy are controlled by the government. Moreover, this type of economy is most common in communists or socialists governments because in these, individual freedoms tend to be limited and the government has a lot of control over most aspects of the society, including economy. Also, in a command economy, the government issues a lot of regulations and has a lot of control. According to this, the correct answer is D.

Answer:

(D)  communist government that provides a lot of regulation.

Explanation:

Your Welcome :D

what is stakeholders​

Answers

Answer:

A stakeholder is a party that has an interest in a company and can either affect or be affected by the business.

Hope this helped you!

Explanation:

Can a notary advertise saying on time 24/7. Is this allowed

Answers

Answer:

A Notary Signing Agent creates a new advertisement in the local Pennysaver that uses the phrase "On time 24/7." Is this allowed? Yes, this is allowed.

An affiliate of an issuer that holds control stock for five months sells 1,000 shares for a $10,000 profit. How will this transaction be treated

Answers

Answer:

The Profit will be given to the insurer after been removed from the affiliate .

Explanation:

Based on the information given this transaction be treated by removing the profit which is the amount of $10,000 from the affiliate which is an affiliate of the insurer and then given the insurer the profit amount of $10,000 which was removed from the affiliate reason been that the control stock was been holds by the affiliate for five months in which it was later sold which means that the control stock was sold before the six month holding period.

Therefore the Profit will be given to the insurer after been removed from the affiliate .

Other Questions
flow chart of components of blood Describe how you know the number of protons and electrons in an atom. 4) A scuba diver swam 112 feet beneath the surface ofthe ocean. He then climbs up 63 feet. What is his depthnow? Visual cues provide_____of usable cues for spatial orientation. 1. What is one example of a chemical reaction? A catering business charges $50 to cater a meal for an event. The business also charges $12.50 per person for dinners that include chicken and $14.00 per person for dinners that include beef. Determine the charge for catering a dinner if 12 people request chicken and 8 request beef. McDonalds pressed on with the strategic plan of offering all-day breakfast in spite of initial struggles because strategic decisions require long-term commitment.a. Trueb. False 2. Continuous data are usually _____________________, but discrete data are usually ______________________. [tex]11 \times 4[/tex] In what ways did Chute-pa-lu laws differ from white laws? Did the two groups share some beliefs about laws? What was the significance of spirit law," and how did it differ from other laws, if at all? The Role of Computer Performance Designing high performance computers is one of the major goals of any computer architect. As a result, assessing the performance of computer hardware is at the heart of computer design and greatly affect the demand and market value of the computer. However, measuring performance of a computer system is not a straight-forward task: Which application to use to measure performance? What component of computer to measure (e.g., processor, I/O, cache)? How do other parameters affect performance (e.g.,OS, compiler)?How do you define performance (e.g., faster, or most completed jobs during a certain period of time) - execution time vs. throughput.ExampleDo the following changes to a computer system increase throughput, decrease response time, or both?1) Replacing the processor in a computer with a faster version.2) Adding additional processors to a system that uses multiple processors for separate tasks - for example handling an airline reservation system. Select the correct answerCarol creates compost from the garden waste in her house. Which of solid waste management does Carol follow?A. reduceB. reuseC. recycleD. Rot If a space probe moves 20 m in 4 s, how fast is it moving? Write four sentences that describe a good doctor-patient relationship. Which one element makes up the majority of your body weight? Which one element makes up the majority of your body weight? carbon water oxygen hydrogen Point U is located at (1,-4) on the coordinate plane. Point U is reflected on-axis to create point U'. What ordered pair describes the location of U'? Lucas is having posters made for a school event. The setup fee for producing the posters is $18, and each poster he has made costs an additional $1.50. If the total cost of Lucas's posters is $42, how many posters did he have made? You should be most suspicious of tube mis-placement following an open cricothyrotomy if:______.a) bleeding from the subcutaneous tissue is observed.b) there is minimal rise of the chest during ventilations.c) progressive redness is noted around the insetion site.d) a cracking sensation is noted when palpating the neck. what are the advantage of buying a new vehicle One of the major problems with the 1849 Constitution was that:__________.