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sp2606 [1]
3 years ago
7

g On January 1, you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000

over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current interest rate is 12%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar. $ Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%?
Business
1 answer:
Verdich [7]3 years ago
4 0

Answer:

Present value = $31,047,749

No. The present value when the interest rate is 12% is less than the present value when the interest rate is 5%

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 8 = $6,250,000

I = 12%

Present value = $31,047,748.54

Present value when interest rate is 5% = $40,395,079.75

The present value when interest rate is 5% is greater than the present value when interest rate is 12%

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Select all that apply. Select other ways to measure the quality of life in a country besides the real GDP per capita.
Nata [24]
GDP stands for Gross Domestic Product. When we refer to Per Capita GDP, this covers the gross income of the country, and this is divided by the number of population in that country. Basing on this definition, I can say that the other ways to measure the quality of life in a country aside from basing from per capita GDP is through Genuine Progress Indicator, and <span>Gross Domestic Product. Hope this helps.</span>
4 0
3 years ago
Quitman Enterprises sells its business language dictionary to college students throughout the United States. Joseph Quitman, the
padilas [110]

Answer:

The answer is: E) Market development strategy

Explanation:

A market development strategy involves selling your current products in new markets.

In this case, Quitman Enterprises will sell their language dictionary (current product) to international students abroad (new market).

They will seek to expand their potential market through new users of the same product.

7 0
3 years ago
Answer the following question based on the article "The Mystery of Original Sin: We Don't Know Why God Permitted the Fall, but W
Alexandra [31]

Answer:

D) He wants us to learn that having Him at the center of our lives will always be the best for us no matter how big or small the decisions we must face.

Explanation:

The article exposes that dehumanization is part of the world we're living in today. Marguerite Shuster argues that the world we're living in today is Genesis 3 world.

What's wrong with this world? "As the story goes, Chesterton responded with just two words: "I am." His answer is unlikely to be popular with a generation schooled to cultivate self-esteem, to pursue its passions and chase self-fulfillment first and foremost."

Then Shuster's invitation is to recenter our lives at Him.

References:

Shuster , M. (2013). The Mystery of Original Sin: We don’t know why God permitted the Fall, but we know all too well the evil and sin that still plague us. Christianity Today, 57(3), 38-41

Shuster, Marguerite. “Did God Plan the Fall?” ChristianityToday.com, Christianity Today, 24 Sept. 2018

8 0
3 years ago
Belinda was involved in a boating accident in 2019. Her speedboat, which was used only for personal use and had a fair market va
Katen [24]

Answer: $200

Explanation:

To qualify as a Casualty loss, the event that led to the damage or destruction must have been unexpected such as an accident, hurricane, fire etc.

When calculating for the Casualty loss deduction, we simply deduct the money received from the insurance from the Adjusted basis,

Casualty loss deduction = Adjusted basis - Cash received from the Insurance company

= $14,000 - $10,000

= $4,000

Since it is After any limitations, we also deduct a cost per event floor of $100 and 10% of the AGI

=4,000 - 100 - (37,000*0.1)

= $200

Belinda's casualty loss deduction (after any limitations) is $200.

3 0
3 years ago
Kevin Jones, of Elon, North Carolina, is single and recently graduated from law school. He is employed and earns $9,000 per mont
timofeeve [1]

Answer:

Kevin Jones

a. Kevin's debt payments to disposable income ratio = 21%

b. The first question that Kevin should ask himself is whether he actually requires the Kawasaki motorcycle and for what purpose.  Since he is already paying for a new auto that he purchased during law school, Kevin should try to limit his expenses to enable him save money for retirement.  He has enough debts now.  He should consider paying off his loans or rather investing some reasonable savings.  The earlier he does, the better for him.

Explanation:

a) Data and Calculations:

Monthly salary = $9,000

Monthly Deductions:

Federal income tax withheld =       $1,600

State income taxes =                           520

Medicare & Social Security taxes =    690

Health insurance =                              220

Total deductions =                         $3,030

Monthly Disposable income = $5,970 ($9,000 - $3,030)

Debt payments:

Outstanding student loans = $80,000

Monthly repayment of student loans = $950

Auto loan = $300

Total monthly debt payments = $1,250

Debt payments to Disposable income ratio = $1,250/$5,970 = 0.209

= 21%

6 0
3 years ago
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