Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

You have just received notification that you have won the $3.0 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 61 years from now. What is the present value of your windfall if the appropriate discount rate is 9 percent?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9882731

Have any Question?


Related Questions in Basic Finance

A stock price is currently 20 and at the end of 3 months it

A stock price is currently $20, and at the end of 3 months it will increase or decrease by 10%. The risk free rate is 5% per year (continuous compounding). Assume that ST is the price at the end of 3 months. what is the ...

Cannons corporation will pay a 400 per share dividend next

Cannons Corporation will pay a $4.00 per share dividend next year. The company pledges to increase its dividend by 4 percent per year, indefinitely. If you require a 13 percent return on your investment, how much will yo ...

1 you have been asked to develop a capitation rate for a

1. You have been asked to develop a capitation rate for a primary care group based on the following projections: Service Annual Frequency/1,000 Cost per Service Inpatient Visits 100 $7,000.00 Office Visits 3,000 $45.00 L ...

The winner of the first annual tom morris golf invitational

The winner of the first annual Tom Morris Golf Invitational won $110 in the competition which was held in 1900. In 2015, the winner received $1,470,000. If the winner's purse continues to increase at the same interest ra ...

One year ago you bought a put option on 125000 euros with

One year ago, you bought a put option on 125,000 euros with an expiration date of one year. You paid a premium on the put option of $.05 per unit. The exercise price was $1.36. Assume that one year ago, the spot rate of ...

Please help me review for a test by helping me with this

Please help me review for a test by helping me with this problem. Please show work/formulas used so I can study how you got the answer. Argent Industries has sales of $2,200, total assets of $1,400, and a debt-equity rat ...

What is the difference between systematic versus

What is the difference between systematic versus unsystematic risk?

The veggie hut has net income of 26611 total equity of

The Veggie Hut has net income of $26611, total equity of $101668, and total assets of $168714. The retention ratio is 0.11. What is the internal growth rate? Input your answer as a decimal rounded to 4 places (i.e., 1% = ...

Question - the following are annual rates of return for us

Question - The following are annual rates of return for U.S. government T-bills and U.K. common stocks. Year U.S. Government T-Bills U.K. Common Stock 2003 .063 .150 2004 .081 .043 2005 .076 .374 2006 .090 .192 2007 .085 ...

Your accounts receivable clerk m adams to whom you pay a

Your accounts receivable clerk, M Adams, to whom you pay a salary of $2,175 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $118,900 as shown in the ledger ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As