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barxatty [35]
4 years ago
15

A lottery claims its grand prize is ​$15 ​million, payable over 5 years at ​$3000000 per year. If the first payment is made​ imm

ediately, what is the grand prize really​ worth? Use an interest rate of 8​%.
Business
1 answer:
xz_007 [3.2K]4 years ago
3 0

Answer:

$ 11, 978,133.75

Explanation:

The grand prize of 15,000,000 is worth the present value of the prize at an 8% interest. The prize is paid every year, meaning its an annuity case.

The present value of an annuity is calculated using the formula

PV = P × <u> 1 − (1+r)−n </u>

  r

Where

P $3,000,000

r is 8% 0r 0.08

n is 5

PV = $3,000,000 x <u>1-(1+0.08) - 5</u>

    0.08

PV =$3,000,000 x<u> 1 - 0. 6805831</u>

    0.08

PV = $ 3,000, 000  x 3.99271

PV = 11, 978,133.75

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Artist 52 [7]

The strategy that used by Coca-Cola in the scenario is known as multidomestic strategy.

<h3>What is a multidomestic strategy?</h3>

A multidomestic strategy simply means an international strategy that chooses to focus on advertising and commercial efforts regarding the sale of a product.

In this case, the The Indian Coke subsidiary launched a chunky mango juice. This is an example of a multi domestic strategy.

Learn more about multidomestic strategy on:

brainly.com/question/25878979

5 0
3 years ago
Separate accounts are kept for each type of earnings deductio?. True or​
Iteru [2.4K]

The answer would be (true)

8 0
3 years ago
It is mostly the women between 25 and 54 years of age who watch the lifestyle channels owned by Scripps Networks Interactive, an
omeli [17]

It is mostly the women between 25 and 54 years of age who watch the lifestyle channels owned by Scripps Networks Interactive, and the advertisements run on these channels are essentially aimed at them. These women are the company's <u>Target audience</u>

Explanation:

In the question above the women between the age of 25-54 years are the Target Audience because the interactives and the advertisement  on the Scripps network are aimed at these women's.

Now evaluating the other options

A )<u>Strategic Window</u> refers to a time duration during which the particular strategy adopted will work .In this case no time duration is discussed.So its is not a correct answer.

B)<u>Advertising medium :</u>The medium using which a message is communicated to the targeted audience(like TV,radio,newspaper)

<u>C)Consumer jury </u>:In this method the consumer play the role of a jury and they are asked to rank an advertisement

So we can say that These women are the company's <u>Target audience</u>

4 0
3 years ago
Distinguish between small and large office.​
kotykmax [81]
A small office is usually found in a smaller organization as for a bigger office is used for more high in people and company’s
8 0
3 years ago
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of dep
luda_lava [24]

Answer: 446

Explanation:

Net Income will be calculated as:

=(Sales - Operating costs - Depreciation - Bond × interest rate) × (1-tax rate)

= (8250 - 5750 - 1000) - (3200 × 5%) × (1-35%)

= 1500 - (3200 × 0.05) × 65%

= (1500 - 160) × 0.65

= 1340 × 0.65

= 871

Free Cash flow will be calculated as:

= (8250-5750-1000) × (1-35%) + 1000 - 1250 - 300

= 425

The firm's net income will exceed its free cash flow by:

= 871 - 425

= 446

8 0
3 years ago
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