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antoniya [11.8K]
3 years ago
11

You have won the lottery. You will receive $5,500,000 today, and then receive 40 payments of $1,900,000. These payments will sta

rt one year from now and will be paid every six months. A representative from Greenleaf Investments has offered to purchase all the payments from you for $35 million. If the appropriate discount rate is an APR of 9 percent compounded daily, should you take the offer
Business
1 answer:
san4es73 [151]3 years ago
6 0

Answer:

no, you shouldn't take the offer because the present value of your prize is higher than $35 million.

Explanation:

we must first calculate the present value of the annuity in 6 months. The effective interest rate per year = (1 + 9%/365)³⁶⁵ - 1 = 1.094162145 - 1 = 0.094162145 = 9.4162145

the discount rate for every 6 months:

0.094162145 = (1 + r)² - 1

1.094162145 = (1 + r)²

√1.094162145 = √(1 + r)²

1.046022058 = 1 + r

r = 0.046022058 = 4.6%

now the present value of the annuity in 6 years = $1,900,000 x (annuity factor, 4.6%, 40 periods) = $1,900,000 x 18.14185 = $34,469,515

then we must find the present value = $34,469,515 / 1.046 = $32,953,647.23

the total value of your prize = $32,953,647.23 + $5,500,000 = $38,453,647.23

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Explanation:

A married women Karen earns = $2250

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If the Karen decline to participate in the cafeteria then her taxable income is $2250 (wages).

If the Karen accept to participate in the cafeteria then her taxable income is $2250 - $115 (contribution) = $2135

If Katie declined to participate in the cafeteria then her taxable income is $2075 (wages).

If Katie accept to participate in the cafeteria then her taxable income is $2075 - $115 (contribution) = $1960

7 0
3 years ago
Check the ONE factor that is NOT used to determine the best channel to send a message. *
mihalych1998 [28]

Answer:

Concern of your audiences response.

Explanation:

Communication can be defined as a process which typically involves the transfer of information from one person (sender) to another (recipient), through the use of semiotics, symbols and signs that are mutually understood by both parties.

The Sender Message Channel Receiver (SMCR) model of communication was developed and created by David Berlo in 1960. SCMR was developed from the Shannon-Weaver model of communication of 1949.

The SCMR model of communication comprises of four (4) main components and these are;

1. Sender (S) : this is typically the source of information (message) or the originator of a message that is being sent to a receiver. Thus, they are simply the producer of a message.

2. Channel (C) : this is the medium used by the sender for the dissemination or transmission of the message to the recipient. For example, telephone, television, radio, newspapers, billboards etc.

3. Message (M) : this is the information or data that is being sent to a recipient by a sender. It could be in the form of a video, audio, text message etc.

4. Receiver (R) : this is typically the destination of information (message) or the recipient of a message that is being sent from a sender. Thus, the receiver is any individual who is able to read, hear or see and process the message being sent or communicated in the communication process.

The factors used to determine the best channel to send a message includes the following;

I. The importance of a message

II. The amount and speed of feedback from the receiver (recipient).

III. The need for a permanent record of the message.

IV. Cost of the channel.

V. The degree of formality desired by the sender of the message.

VI. Confidentiality and sensitivity of the message being sent.

VII. The preference and level of technical expertise of the receiver (recipient).

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3 years ago
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Answer:

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Vertical publication are those types of publications where the editorial content is majorly focused on one type of industry or business. They are similar to trade magazines. In this case, the publication is concerned and majorly focused on marketing industry, hence why we refer to it as a vertical publication. They are publications usually written to benefit a particular business, industry or profession.

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Explanation:

<u>Internalizing the externality means transferring the burden or the cost of a negative externality (like pollution or traffic congestion) to inside(i.e external to internal).</u>

<u></u>

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