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user100 [1]
3 years ago
13

9. Assume that you just won $35 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.75 mil

lion each beginning immediately. If the rate of return on securities of similar risk to the lottery earning (e.g, the rate on 20 year US Treasury bonds) is 6 percent, what is the present value of your winning
Business
1 answer:
Morgarella [4.7K]3 years ago
8 0

Answer:

$11.47 million

Explanation:

The present value of an annuity is determined by:

PV = P*[\frac{1-(1+r)^{-n}}{r}]

With annual payments (P) of $1.75 million, for a period (n) of 20 years at a discount rate (r) of 6 percent, the present value is:

<u />PV = 1.75*[\frac{1-(1+0.06)^{-20}}{0.06}]\\PV=\$11.47\ million<u />

The present value of your winning is $11.47 million

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Mara is a management consultant for a soda manufacturer that wants to expand into health drinks such as green tea and after-work
kirill115 [55]

Answer:

B. "Carefully consider the entry choices over time before making a decision."

Explanation:

Since Mara company specializes in manufacturing sodas, venturing into health drinks is risky and therefore would need a lot of planning, thorough analysis of the target market . Looking into whether there's sufficient demand for it and forecasting future trends with regards to health drinks is also important . Mara should therefore, test venture into this by testing the market and considering entry choices over time before making a decision.

6 0
3 years ago
Warren, Inc. purchased a $400,000 life insurance policy on the company president on January 1, 2017. The premium that was paid o
stealth61 [152]

Answer: $10,400

Explanation:

4 0
4 years ago
What is the principal ?
9966 [12]

Answer

adjective

1.

first in order of importance; main.

"the country's principal cities"

Similar:

main

chief

primary

leading

foremost

first

most important

predominant

dominant

(most) prominent

key

crucial

vital

essential

basic

staple

critical

pivotal

salient

prime

central

focal

premier

paramount

major

ruling

master

supreme

overriding

cardinal

capital

preeminent

ultimate

uppermost

highest

utmost

top

topmost

arch-

number-one

Opposite:

minor

subordinate

subsidiary

2.

(of money) denoting an original sum invested or lent.

"the principal amount of your investment"

noun

1.

the person with the highest authority or most important position in an organization, institution, or group.

"a design consultancy whose principal is based in San Francisco"

Similar:

boss

chief

chief executive (officer)

CEO

chairman

chairwoman

managing director

MD

president

director

manager

employer

head

leader

ruler

controller

head honcho

gaffer

governor

guv'nor

2.

a sum of money lent or invested, on which interest is paid.

"the winners are paid from the interest without even touching the principal"

Similar:

capital sum

capital

capital funds

working capital

6 0
3 years ago
Why do infomercials use both strong and weak arguments? to appeal to both high and low involvement consumers because it is neces
Vesna [10]

Answer:

The correct answer is letter "A": to appeal to both high and low involvement consumers.

Explanation:

Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.

Thus,<em> infomercials can make use of both strong and weak arguments at different levels of consumer involvement.</em>

4 0
3 years ago
Each of these statements is true if you work forty-five hours in the same pay period:
Lilit [14]

Answer:

You will have worked five hours overtime

Explanation:

In standard work hours in most companies/organizations, the work hours weekly is usually 40 hours.

So if on works for 45 hours in the same pay period, it means such a person has worked 5 additional hours which is overtime.

Thus, option C is correct.

7 0
3 years ago
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