Bu look dook look3. Congratulations! You have just won America's Got Talent and the much-ballyhooed grand prize of $1 million!However, had you read the fine print at the end of the show's credits, you would have seen that the prize isactually an annuity paid out in equal payments over a 40-year period (or $25,000 per year). If your opportunitycost is 6%, what is the actual value of this prize to you at the time of your victory? Assume the first payment ismade immediately. (Hint: this is an "annuity due" problem.)

Prize value = $1,000,000Annual payment = $25,000Interest rate = 6%Number of years = 40 years

Answered: 3. Congratula However, actually ar cost…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q1:-A pooducen faces a f- Rs, So and avariable cosk Rs,Spes umit ob output when he produces less than 200 Units o output: Assuming that total cost funpetion is limeax, detemine the eajuation of the total cost of hunction. what is the break even level of fixed.cost of out pu-i the psice of output is Rscl0 pen umit, Also doaw the relevant gaphs Determime the producers net Jevenue u out pu is 12 units and the poice of outpuh Rs, S, RS,10and RSIS 8es pectively is
H1.
Determine the missing amounts. Unit Selling Price 1. 2. 3. $ $500 $250 (e) LA $ LA Unit Variable Costs $200 (c) +A $ Unit Contribution Margin $65 (f) $560 (a) Cc M
27-By considering the following given information, find out the margin of safety. Fixed cost OMR 150000, Variable cost OMR 200,000 and total sales revenue OMR 400,000. O a. OMR 100000 O b. OMR 200000 O c. OMR 400000 O d. OMR 600000
Based on the following sensitivity report, what would be the impact of changing the constraint right-hand side for Resource_A to 73 and, at the same time, changing the constraint right-hand side for Resource C to 600? Variable Cells Final Objective Coefficient Allowable Allowable Reduced Cost Cell $8$2 $B$3 $854 Name Value Increase Decrease 1E+30 1. Product 1 -2 2 Product 2 175 16430 Product 3 -1.5 9 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease SHS9 Resource A 100 16430 90 SH$10 Resource B 525 s00 1E+30 340 SH$11 Resource C 700 1.75 700 390 160 Applying the 100% rule, The shadow price remains valid because the total change in the constraint right-hand sides does not exceed 10 3 of 5 Next > ASUS

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3. Congratula However, actually ar cost is 6% made imm