Will give brainliest

Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 2222 years or as

Wewaii [24]

Answer:

0 i.e. zero

Explanation:

The formula we will us to calculate the cash option payout for formula for calculating the present value (PV) .

Present value (PV) can simply be described as the current value of a future amount or future stream of cash flows given a certain return rate.

To calculate the PV of a future cash flow, we will discount it by using the discount rate.

The formula is provided as follows:

PV = FV/(1 + r)^n ............................................ (1)

Where,

PV = Present Value = ?

r = discount rate = 66% = 0.66

FV = annual future value = $863,636.36

n = number of years = 2222 years

Note that the annual future value calculated by diving the $1919 million by 2222 years and this give us $863,636.36 (i.e. 1,919,000,000 ÷ 2222 = $863,636.36).

Substituting the figures above into equation (1), we obtain:

PV = 863,636.36/(1 + 0.66)^2222

= 863,636.36/(1.66)^2222

= 863,636.36/∞

PV = 0

This is because, the division of any number by infinity is equal to zero. And if we multiply by zero by 2222, it will still give us zero PV.

Therefore, the cash option payout will be zero. It is better the winner take the option of collecting $863,636.36.

5 0

2 years ago

1. What kind of financial information is a publicly traded company required to provide to its stockholders? Which financial stat

qwelly [4]

Answer:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Cash flow for Crooked Golf is $30,000

Explanation:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Csh flow for Crooked Golf is $30,000.

Calculated as follow,

$90,000 - $60,000

Depreciation is non Cash flow.

4 0

2 years ago

The substitution bias in the consumer price index refers to the idea that consumers ______ the quantity of products they buy in

dsp73

Answer:

change; over-estimates

Explanation:

Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.

7 0

2 years ago

Nancy has been asked to prepare a presentation for her class that compares the market share data of three breakfast cereals from

tresset_1 [31]

Bar graph and ur welcome bby

3 0

3 years ago

Read 2 more answers

One argument for the growing income gap between the unskilled and skilled workers in America is that unskilled workers are _____

Lapatulllka [165]

Answer:

The correct answer is b. substitutes, complements.

Explanation:

One argument for the growing income gap between the unskilled and skilled workers in America is that unskilled workers are <u>substitute</u>s with technology and skilled are <u>complements</u> with technology.

3 0

3 years ago