Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: You have just won the Publishers Corporation Sweepstakes. You have been offered a lump sum of USD 1,000,000, or a lifetime [end-of-year] annuity of USD 100,000 each year. If you expect to live for twenty years & can earn an annual interest rate of fifteen percent on your investments, which alternative should you select [ignoring tax consequences]?                      

[A]       Give it to your favorite Professor.

[B]       Donate it to FSC parking facilities. 

[C]       Take the million dollars

[D]       Take the annuity

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916203

Have any Question? 


Related Questions in Basic Finance

1 by how much will the clamping force on the joint be

1 .By how much will the clamping force on the joint be reduced? Sketch the new joint diagram, assuming maximum initial preload ? Compute the estimated maximum bolt tension and minimum clamping force under the 3,000 lbs e ...

1 how do scientists get ideas for research what are the

1. How do scientists get ideas for research? What are the advantages and potential disadvantages of each method for doing so? 2. What guidelines do scientists use to conduct an effective literature search? What specific ...

Show how a combination of interest rate caps and floors can

Show how a combination of interest rate caps and floors can be equivalent to an interest rate swap ? What are the advantages and disadvantages of an interest rate collar over an interest rate cap? Explain how the Black m ...

1 why is notional principal often exchanged in a currency

1. Why is notional principal often exchanged in a currency swap but not in an interest rate or equity swap? Why would the parties to a currency swap choose not to exchange the notional principal? 2 .Explain how the follo ...

Mimi joined umuc basketball team since summer 2016 on

Mimi joined UMUC basketball team since summer 2016. On average, she is able to score 30% of the field goals. Assume she tries 15 field goals in a game. (a) Let X be the number of field goals that Mimi scores in the game. ...

Nbspa shoe company checks police records on 1200 randomly

A shoe company checks police records on 1200 randomly selected auto accidents and notes that teenagers were at the wheel in 180 of them. Construct a 90% confidence interval estimate of the proportion of shoe accidents th ...

Consider a us investor who owns a portfolio of japanese

Consider a U.S. investor who owns a portfolio of Japanese securities worth 160 million japanese yen. In order to hedge to currency risk, he considers buying currency puts on yen instead of selling futures contracts. In P ...

1 what is the difference between the probability of a stock

1. What is the difference between the probability of a stock out and the magnitude of a stock out? 2. Data suggest that while overall average inventory levels are declining, the relative percentage being held by manufact ...

Module discussiontwo separate discussions at least 150

Module Discussion TWO SEPARATE DISCUSSIONS. AT LEAST 150 WORDS EACH. Cost of Capital Actions for 'Cost of Capital' In light of the Enron, Worldcom, option back dating, government bailouts/nationalizations and Madoff scan ...

1 why might the riskiness of cash flow from the residual

1. Why might the riskiness of cash flow from the residual value of the real estate differ from the riskiness of cash flow from the corporation's core business? What would cause these cash flows to be correlated? 2. What ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen