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Ksju [112]
3 years ago
8

You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w

ill be awarded on your 100th birthday (assuming you’re around to collect), 66 years from now.
What is the present value of your windfall if the appropriate discount rate is 10 percent?

PV = $__________________________
Business
1 answer:
son4ous [18]3 years ago
8 0

Answer:

The present value of your windfall if the appropriate discount rate is 10 percent is $5,562

Explanation:

Amount of Prize = $3,000,000

number of year = 66 years

Discount Rate = 10%

use following formula to calculate the Present value of Lottery prize

Present Value = Future value / ( 1 + discount rate )^number of years

PV = FV / ( 1 + r )^n

PV = $3,000,000 / ( 1 + 0.10 )^66

PV = $3,000,000 x ( 1 + 0.10 )^-66

PV = $3,000,000 x ( 1.10 )^-66

PV = $5,561.65

PV = $5,562

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Sales at a fast-food restaurant average $6,000 per day. The restaurant decided to introduce an advertising campaign to increase
lutik1710 [3]

Answer:

Yes, sales have increased as a result of the advertising campaign.

Explanation:

Find attached the explanation.

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3 years ago
What is the consumer credit act
Reptile [31]
The Consumer Credit Act is protections to apply between agreements between traders and individuals, sole traders, partnerships and unincorporated associations. But not agreements made between traders and bodies.
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What are two ways you would get a good credit report?
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Apply for a credit-<span>builder loan \</span><span>Eliminate credit card balances.

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3 years ago
RESTAURANT RESEARCH SCENARIO - Insight Research, a marketing research company, has been hired by a national chain of family rest
maks197457 [2]

Answer:

Employees attitude to customers (Customer Relationship) and the quality of the food are the two most important trends that would bring about an increase in sales.

Explanation:

The first instrument of effective sales is an establish relationship. If a customers visits a restaurant to buy food and does not feel welcomed, the tendency to return back another time is very slim. Hnece, taking the scenerio in questions,the employees do not have the right attitude for keepiing their customers loyal to their product irrespective of whether the product is good or bad.

On the other hand, the reason for visiting a restaurant is to eat good food and not bad. So, when the quality of food cooked by the restaurant does not meet the taste and quality expected by the customer, the possibility of having such customer come around again is low. This invariably implies loosing the customer and the chain of connections such customer would have brought to the restaurant.

In summary, having the right employees with good customer relationship and chefs with good food recipes and quality is likely to result in the restaurant experiencing an increase in sales

6 0
3 years ago
Best Ever Toys just paid its annual dividend of $1.78 per share. The required return is 10.6 percent and the dividend growth rat
lianna [129]

Answer: $20.44

Explanation:

From the question given, we are informed that Best Ever Toys just paid its annual dividend of $1.78 per share and that the required return is 10.6% and the dividend growth rate is 1.23%, then the expected value of this stock five years from now will be:

= [$1.78 × (1 + 1.23%)^6] / (10.6% - 1.23%)

= (1.78 × 1.0123^6)/(10.6% - 1.23%)

= 20.44

The expected value of the stock is $20.44

5 0
3 years ago
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