Provide solution for this question You have just received notification that you have wonthe $3.0 million first prize in the Centennial Lottery.However, the prize will be awarded on your 100thbirthday (assuming you're around to collect), 66 yearsfrom now. What is the present value of your windfall ifthe appropriate discount rate is 11 percent?a. $11,374.50b. $3,060.59c. $2,999.37d. $2,815.74e. $3,121.80

Step 1: The calculation of the present value AB1Lottery won (FV) $ 3,000,000.00 2Awarded after…

Answered: You have just received notification…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

You have just received notification that you have won the $1.5 million first prize in the Centennial Lottery. However, the prize will be awarded on you 100th birthday assuming you're around the collect, 63 a years from now. What is the present value of your windfall if the appropriate discount rate is 8 percent?
es You have just received notification that you have won the $2 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 63 years from now. What is the present value of your windfall if the appropriate discount rate is 8 percent? Multiple Choice $14,425.18 $15,679.54 $15.993.13 $15,365.95 $40,135.54
sanju
You have just received notification that you have won the $2 million first prize in the Centennial 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 9.1 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.., 32.16.) Present value
You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 70 years from now. What is the present value of your windfall if the appropriate discount rate is 6.45 percent?
You have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings?
You just purchased an annuity that will pay you $24,000 a year for 25 years, starting today. What wasthe purchase price if the discount rate is 8.5 percent?Select one:a. $266,498b. $241,309c. $251,409d. $258,319e. $245,621
You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 66 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Saved You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 74 years from now. What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 45 Present value < Prev 8 of 23 Next Graw ned BN
. Lottery Winnings The winner of a “million dollar”lottery is to receive $50,000 plus $50,000 at theend of each year for 19 years or the present valueof this annuity in cash. How much cash wouldshe receive if money is worth 8%, compoundedannually?
You have just received notification that you have won the $2.05 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 75 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. Present value
the relevant discount rate is 5.5 percent, what is the present value of this liability? 11. Calculating Present Values You have just received notification that you have won the $1 million first prize in the Centennial 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 8.45 percent? 1050

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS