The prize is really worth $1,006,512.21.
<h3>What is present value?</h3>
Present value is the sum of cash flows discounted at the rate of interest or the discount rate. The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000
The present value can be determined using a financial calculator
Cash flow from year 1 to 10 = $150,000
Discount rate = 8%
Present value = $1,006,512.21
Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.
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<span>Basing ourselves on probability and test measures alone, and assuming it has a normal distribution, we should expect for less than 1% of children being gifted, however we need to take into account that giftedness is subjective and cannot be objectively measured by tests alone</span>
Based on the scenario, the gestalt principle that best
accounts for this phenomenon of which Caleb can still read the announcement
despite of the fact that the letters are not completely formed is because of
the gestalt principle of closure. This law explains of how an individual could
see incomplete objects because of how perception fills the visual gap of an individual.
Answer:
Effect on income= $68,580 increase
Explanation:
<u>Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.</u>
<u>First, we need to calculate the unitary cost:</u>
Unitary cost= 46.1 + 8.8 + 1.8 + 1.3
Unitary cost= $58
<u>Now, the effect on the income of accepting the offer:</u>
Effect on income= 2,700*(83.4 - 58)
Effect on income= $68,580 increase
