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Volgvan
3 years ago
6

You just won the $85 million Ultimate Lotto jackpot. Your winnings will be paid as $3,400,000 per year for the next 25 years. If

the appropriate interest rate is 6.7 percent, what is the value of your windfall?
Business
1 answer:
Alex Ar [27]3 years ago
6 0

Answer:

PV= $40,716,437.34

Explanation:

Giving the following information:

Cash flow= $3,400,000 per year

Number of years= 25

Interest rate= 6.7%

To calculate the present value, first, we will calculate the future value:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {3,400,000*[(1.067^25) - 1]} / 0.067

FV= 206,006,183.4

Now, the present value:

PV= FV/(1+i)^n

PV= 206,006,183.4/ (1.067^25)

PV= $40,716,437.34

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Carson's tax liability for 2021 as a 23-year full-time student, who earns from the summer internship and part-time job and receives a qualified dividend is $645.

<h3>What is tax liability?</h3>

Tax liability refers to the amount that a taxpayer is obliged to pay.

The tax liability is a function of the taxpayer's taxable income, tax bracket, deductions, and applicable tax rate.

In this case, we have assumed a flat tax rate of 10% for both Carlson's earned income and the dividend income.

<h3>Data and Calculations:</h3>

Earned income = $14,000

Qualified Dividend income = $5,000

Adjusted taxable income = $6,450 ($19,000 - $12,550)

Tax liability = $645 ($6,450 x 10%)

Thus, Carson's tax liability for 2021 is $645.

Learn more about tax liabilities at brainly.com/question/7409145

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What advice does Jessica Cervantes give to teen entrepreneurs who are just starting out? (Site 1).
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3 years ago
What are the six characteristics of money? explain how the u.s. dollar has those six characteristics?
Leya [2.2K]
1. durability- objects used as money must withstand physical and tear
2. portability- people need to be able to take money with them as they go about their business
3.divisibility-to be useful, money must be easily divided into into smaller denominations, or units of value
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3 years ago
The following information is available from the current period financial statements:
Galina-37 [17]

Answer:

$166,000

Explanation:

The net cash flow from operating activities using the indirect method is computed below:

Cash flow from Operating activities - Indirect method

Net income $175,000

Adjustment made:

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Less: Decrease in accounts payable -$21,000

Total of Adjustments -$9,000

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8 0
4 years ago
If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, wha
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The necessary adjusting entry to record inventory shortage would be:

“Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000.”

Cost of Merchandise Sold is the cost of goods and services that correspond to sales made to customers. In this case, we need to decrease ending inventory by the quantity of these goods ($5,000) that either were shipped to customers or assigned as being customer-owned under a certain agreement. Meanwhile, the merchandise inventory is the cost of goods on hand and is available for sale ($5,000).

 

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