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IrinaVladis [17]
3 years ago
12

Suppose you have a winning lottery ticket and you are given the option of accepting $3,000,000 three years from now or taking th

e present value of the $3,000,000 now. The sponsor of the prize uses a 6% discount rate. If you elect to receive the present value of the prize now, the amount you will receive is:
Business
1 answer:
Minchanka [31]3 years ago
7 0

Answer:

The amount that will be received today is $2518857.85

Explanation:

To calculate the amount that will be received today, we need to discount the amount that will be received three years from now for a period of 3 years using the given discount rate. As there is only a single cash flow, we will use the formula for present value of principal.

The present value of principal is,

Present value = Cash flow / (1+d)^t

Where,

  • Cash flow is the amount for which we have to found the present value
  • d is the discount rate
  • t is the time in terms of number of periods
  • Here the t is in years and the number of periods is 3 years

Present value = 3000000 / (1+0.06)^3

Present value = 2518857.849 rounded off to $2518857.85

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The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company
stealth61 [152]

Answer:

209,000 shares

Explanation:

The company is authorized to issue 209,000 shares which represent maximum shares that can be issued. Authorized shares is the maximum number of shares a company can issue and this is stated in the corporate charter.

5 0
2 years ago
Monica, a​ doctor, owns a small health care clinic that serves underserved people in a​ lower-income neighborhood. What type of
kogti [31]

Answer:

b

pyfpyfjzifztksrizirsitstoztozotd7itsktdtixoyd

7 0
2 years ago
Describe either a desire-based or fear-based advertisement that you have seen. Explain what desire or fear you think the ad is u
joja [24]

Desire-based advertising is used to drive people to purchase items based on a desire for it.  An example for desire-based advertising is to draw people in to a store based on a sale of an item that they desire. A fear-based advertisment can be for insurance. They advertise against the "what ifs" and "what could happen" if you do not hold car insurance and end up needing it.

3 0
3 years ago
An audit of historical financial statements most commonly includes the Group of answer choices income statement, the statement o
Advocard [28]

Answer:

balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). Examples of financial statements includes Balance sheet, cash-flow and income statement.

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

An auditor refers to an authorized individual who review, examine and verify the authenticity and accuracy of business financial records or transactions.

Thus, an audit of historical financial statements most commonly includes the balance sheet, income statement, statement of cash flows, and the statement of changes in stockholders' equity.

6 0
3 years ago
Bill Mitselfik has purchased a bond that was issued by Acme Chemical. This bond has a face value of $1,000 and pays a dividend o
kramer

Answer:

$1,068.02

Explanation:

For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:

Given that,  

Present value = $1,000

Rate of interest = 10% ÷ 2 = 5%

NPER = 3 years × 2 = 6 years

PMT = $1,000 × 8% ÷ 2 = $40

The formula is shown below:

= FV(Rate;NPER;PMT;-PV;type)

The present value comes in negative

So, after applying the above formula, the selling price of the bond is $1,068.02

7 0
3 years ago
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