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marysya [2.9K]
4 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]4 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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For each example of a reward, identify whether it is an extrinsic or intrinsic reward.1)The employees were happy with the new la
AveGali [126]

Answer:

The answer is:

1. Intrinsic reward

2. Intrinsic reward

3. Extrinsic reward

Explanation:

What is an intrinsic reward.: Intrinsic rewards are rewards that comes from within the employee. For example, personal achievement, professional growth, sense of pleasure and accomplishment.

What is an Extrinsic reward: Extrinsic motivation is gotten externally. External rewards are typically offered by an employer or manager.

1. )This is an intrinsic reward because no one with more that two years seniority will ne separated from the company except for poor performance. This poor performance clause will act as a motivation to make them perform better.

2. The regular feedback from Jonah's supervisor is an intrinsic reward because Johan will be able to evaluate his strength and weakness and know where to improve himself.

3. Health benefit is an extrinsic reward. This health benefit is offered by Dion's employer. So it is an external reward.

8 0
3 years ago
Sid Slick represents himself as Richard Rich to Ortie Ozarka. Ortie, believing that Sid was really Richard, gave Sid a check pay
Ganezh [65]

Answer:

Harry is a proper holder of the instrument

Explanation:

Impostor rule is the legal principle which states that an imposter endorsement of a negotiable instrument is not a forgery. The loss falls on the drawer of cheque and not on the third party or the bank that clears it. Art and Harry acted in good faith for the consideration.  Hence, Harry is a proper holder of the instrument as any person in its possession is its holder.

5 0
4 years ago
___________ is threatening to steal or actually stealing information from a company and then demanding payment to not use or rel
Sauron [17]

Answer:

Information extortion

Explanation:

This is a manipulative attempt by which an individual seeks to take advantage of what he is rightfully not entitled to.

4 0
3 years ago
troy has $1,250 in an account that pays simple interest of 8% annually b9w much interest will trot have earned by the end of the
VikaD [51]

Answer:

$100

Explanation:

Simple interest is calculated using the formula

I = P x R x T

where I = interest

P= principal amount, $1,250

R= interest rate , 8% or 0.08

T = Time,  one year

The interest troy will earn is

I= $1250 x 0.08 x 1

= $100

Troy will earn $100 as interest

4 0
4 years ago
Stan and Dwight were playing in a golf tournament and came to a hole where there was a hill that required a blind shot to the gr
Svetradugi [14.3K]

Answer:

b) Dwight is liable for negligence because Stan did not knowingly assume the risk that Dwight would hit a shot in his direction

Explanation:

In this scenario there was an agreement between Stan and Dwight where Dwight asked Stan to drive ahead in the golf cart to see if they could hit their shots.

However Stan drove the cart over the hill, saw the green was clear, and started driving back to the tee box.

Instead of waiting as agreed Dwight made a shot that hit Stan on the head injuring him.

Dwight is liable in this case because he was supposed to wait and get feedback from Stan before making a shot.

He knowingly made the shot knowing there was a blind spot.

This is negligence on Dwight's part.

3 0
3 years ago
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