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yan [13]
3 years ago
9

A major lottery advertises that it pays the winner $10 million. However, this prize money is paid at the rate of $ 500,000 each

year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize at 10% annual interest?
Business
1 answer:
My name is Ann [436]3 years ago
8 0

Answer:

We have to discount these payments to find the present value

500,000

500,000/1.1

500,000/1.1^2

500,000/1.1^3

We keep on doing this until we reach 500,000/1.1^19

After that we add all the payments and get the value. A less time consuming way of doing it is using a financial calculator

Pv=?

N=19

FV=0

PMT=500,000

=4,182,460.05 we add 500,000 to this because the first payment was not discounted=4,682,460.05= Present Value.

Explanation:

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Answer: True

Explanation:

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It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.

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Happinessistheroad Corp. has the following information available regarding its labor: Managers expected to pay $11 per direct la
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Answer:

The actual labor rate per hour is $12

Explanation:

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Also, the spending variance is computed as the actual labor rate minus the standard labor rate multiplied by the actual labor hours worked

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lakkis [162]

Answer:

The answer would be affirmative

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