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marysya [2.9K]
3 years ago
9

After hearing a knock at your front door, you are surprised to see the Prize Patrol from your state’s online lottery agency. Upo

n opening your door, you learn you have won the lottery of $22.1 million. You discover that you have three options: (1) you can receive $2.21 million per year for the next 12 years, (2) you can have $19.5 million today, or (3) you can have $5.4 million today and receive $1.70 million for each of the next 10 years. Your lawyer tells you that it is reasonable to expect to earn an annual return of 10% on investments.
Required:
What is the present value of the above options?
Business
1 answer:
Helga [31]3 years ago
5 0

Answer:

Option 2 is best option on the basis of present value analysis of all the options available.

Explanation:

Option 1  NPV = ($2.21 Annual Inflow * 6.814 Annuity Factor 12 year @10%)  = $15.06m

Option 2 NPV = $19.5m

Option 3 NPV = $5.4m + ($1.7m Annual Inflow * 6.145 Annuity Factor for next 10 years @10%) = $15.85m

From the above options the best option available is option 2 which is worth more in todays prices than other options available.

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Buying office space is ______________ in the long run-in comparison to leasing. Which is the correct answer?
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Answer:

less expansive

Explanation:

i took the test. i got it right

5 0
2 years ago
An example of a difficult work decision would be: a. Deciding to finish a task before taking a break b. Deciding to fill the pap
Angelina_Jolie [31]

Answer:

c

Explanation:

8 0
3 years ago
Zahra is an employee at colorz inc. she loves gossiping about her colleagues during office hours, which causes her to receive a
Sphinxa [80]
<span>Zahra is an employee at colorz inc. she loves gossiping about her colleagues during office hours, which causes her to receive a reprimand by her supervisor, dan. a few days later, dan fires gunther, another subordinate, from work for a similar reason. the employees reporting to dan are most likely to conclude he demonstrates a lack of outcome fairness in dealing with employees who gossip at work.

</span><span>Outcome fairness is a judgment that the consequences given to employees are just.</span>
3 0
3 years ago
Beckronski Company has the following information available for the month of​ March: Units ​Transferred- in Costs Direct Material
storchak [24]

Answer:

Direct Material Equivalent Unit Weighted Average Cost Method= 240+ 400- 400= 240

Units Cost for Direct Materials= $52,000 /230= $ 226.086

Explanation:

Beckronski Company

                              Units ​                    Transferred- in Costs

                                            Direct Mat       Conversion Costs      WIP ​inventory

March 1                  240 ​         $33,600           0 ​                            $18,000 ​

<u>Percent complete                    ​100% ​              0% ​                         62.5%</u>

Equivalent Units                     240                     -                          150                                            

Transferred in

<u> March                 400                                                                                    </u>

Equivalent Units                          400                    400                   400

Mar 31  WIP ​inventory,  200

<u>​*Percent complete                       ​100%           ​0% ​                         80%       </u>

Equivalent Units                         400                    -                        320

Weighted Average Cost Method = Beg. Inv Equiv. Units + Units Transferred in Less Ending Inventory Equivalent Units

Direct Material Equivalent Unit Weighted Average Cost Method= 240+ 400- 400= 240

Conversion Costs Equivalent Unit Weighted Average Cost Method=

0+ 400-0= 400

Work In Process Equivalent Unit Weighted Average Cost Method=

150+ 400-320= 230

Costs added in March ​              $52,000            ​$13,200 ​        $48,600

Units Cost for Direct Materials=  $52,000 /230= $ 226.086

4 0
3 years ago
Colin told the management team that their Ohio-based company should produce the textiles for the new line of jackets in China be
ELEN [110]

Answer:

Free trade.

Explanation:

This theoretical policy can be explained to be certain laws under which the government is seen to impose absolutely no tariffs, taxes, or duties on imports, or quotas on exports. Therefore, it is directly seen to be the opposite of protectionism, a defensive trade policy intended to eliminate the possibility of foreign competition. It is seen in terms of unrestricted measures in importation and also exportation of goods in and out of a country.

In the world of our own, which is of the recent times, this policy implementation is done by means of a formal and mutual agreement of the nations which are seen to be involved. Also this policy in some cases may simply be the absence of any trade restrictions.

7 0
3 years ago
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