A contest winner can choose between two prizes: $800,000 in 40 years $3,000 today At a discount rate of 12%, which is the better choice? a) $800,000 in 40 years b) $3,000 today c) The winner should be indifferent d) Need more information
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- If offered the choice of receiving $500 today or $500 in five year's time, which option would you choose, and why? $500 today because time has value and by receiving the money today you can put it to use immediately. O $500 in five year's time because time has value and so the $500 will be worth more then. $500 in five year's time since waiting a year does not involve an opportunity cost.A game show contestant must choose between two prizes: $500,000 in 30 years or $5,000 today. Assuming a discount rate of 12%, which is the better choice? a. The $500,000 in 30 years b. $5,000 today c. The contestant should be indifferent d. Need more informationA morning radio show offered the following four prizes as alternative prizes for one of its competitions. Which prize is the most valuable if your discount rate is 6%? (Show working to justify your answer.) (a) $5,000 per year, forever, with the first amount paid after 1 year. (b) $12,000 per year for eight years, with the first amount paid today. (c) $20,000 today and $80,000 six years from now. (d) $15,000 per year for ten years, with the first amount paid at year 5. (e) State the most valuable prize. (Give a reason for your choice.)
- The following two alternatives are given. Data A B. First Cost $8,200 $5,600 Annual Cost $1,000 $800 Annual Benefit $2,700 $2,100 Life, Years 7. Salvage Value $2,800 $1,000 Assume that MARR is 15%. Use the incremental rate of return analysis to determine which alternative (A or B) one should choose. Find the AIRR, or a range of AIRR. O 10% O 10-12% O 12-15% O > 15%You would like to invest in the following Project: Year Cash Flow 0 $-55,000 1 30,000 2 37,000 Your boss insists that only projects that return $1.10 in today's dollars for every $1 invested can be accepted. The discount rate is 10%. Based on this criteria, should you accept the Project? Why?As the winner of a tandoori chicken eating competition you will receive $10,000 today but this amount will then decline at a constant rate of 2% p.a. over the foreseeable future. If the interest rate appropriate for valuing the prize is 14% p.a. its present value today is closest to: O $95,000. O $61,250. O $72,500. O $71,250.
- math the present value forw normal work please I can't read tothers Offer I. The buyerin this case was Smythe Manufacturing. They offered Dr. Miller $2 million now plus $100, 000 each year beginning atthe end of year six and continuing through the end of year fifteen. You are Dr. Miller's financial advisor and you feel thatgiven the associated risks to this payment stream, a 10% interest (discount) rate should be used to determine the presentvalue of the offer. Offer II. The buyer in this case was Brouwer Pharmaceutical. They offered 40 percent of their grossprofit on the product for the next four years, with payments beginning at the end of the first year. Brouwer's gross profitmargin was 60%. Sales in year one were projected to be $3 million and are forecasted to grow by 30 percent each yeanthereafter. You are Dr. Miller's financial advisor and you feel that given the associated risks to this payment stream, an8% interest (discount) rate should be used to determine the present value…Please answer fast please help arjentFind the future value of a five-year $96,000 investment that pays 5.50 percent and that has the following compounding periods: (Do- not round intermediate calculations, round final answers to 2 decimal places, e.g. 15.25.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Value of investment after 5 years a. Quarterly b. Monthly c. Daily $ d. Continuous $ 129821 125232 129730
- Matthew Young is considering an investment that pays 5.40 percent, compounded annually. How much will he have to invest today so that the investment will be worth $27,000 in six years? (Do not round Intermediate calculations and round your final answer to the nearest penny.) Amount to be invested today e Textbook and Media Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 2 Attempts: 0 of 3 used Submit AnswerQuestion: Using a discount rate of 10 percent, calculate the net present value of each project. (Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.) Info-->Project 3: Purchase a New Fleet of Delivery TrucksHearne could purchase 25 new delivery trucks at a cost of $115,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $5,000. Purchasing the fleet would allow Hearne to expand its customer territory resulting in $200,000 of additional net income per year.You have just received notification that you have won the $1.03 million first prize in Lamarche Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 8 % ? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit $ sign in your response.) Present value $