1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Viefleur [7K]
3 years ago
8

You have just won the lottery and will receive $560,000 in one year. You will receive payments for 22 years, and the payments wi

ll increase 3 percent per year. If the appropriate discount rate is 10 percent, what is the present value of your winnings?
Business
1 answer:
spin [16.1K]3 years ago
5 0

Answer:

$6,116,915

Explanation:

to solve this question you can use an excel spreadsheet to determine the 22 payments. Just type 560000 in the first cell and the second cell = A1 * 1.03, then you drag down until the 22th cell.

Once you have completed the 22 cells, you just go to financial formulas and look for NPV and enter 10% rate and select the 22 cells.

=NPV(10%,560000,...1041765) = $6,116,915

The NPV function actually doesn't give you the NPV it only calculates the present value of the cash flows.

Download pdf
You might be interested in
What are some good ways to convince your mom to let you stay over your best friend house because of the rona?
Luden [163]

Answer:

give ur mom the corona and then u cant stay in the house because anything could be infected

or just annoy her so much that she kicks u out

Explanation:

6 0
3 years ago
Read 2 more answers
Select one or more of the choices below that would properly complete the following statement.When a nation runs a trade deficit,
castortr0y [4]

Answer: it experiences a capital inflow.

Explanation:

A trade deficit is a situation that occurs when the imports of a country is greater than the exports of the country. This is usually measured in monetary terms. For example, let's say in a certain year, the United States exported $3 trillion in goods and it imported goods worth $4 trillion, th n the trade deficit will be ($4 trillion - $3 trillion) = $1 trillion.

Trade deficit can be caused because of capital deficiency. This will then lead to capital flowing into the country that is experiencing the trade deficit.

3 0
3 years ago
The cost of goods sold for Frye Manufacturing in the year was $ 325 comma 000 . The January 1 Finished Goods Inventory balance w
zheka24 [161]

Answer:

$318,400

Explanation:

Cost of Goods Sold                              $325,000

Less: Inventory Opening January 1        ( $ 31,800)

Add;Closing Inventory                               $25,200

Cost of Goods Manufactured                    $318,400

The cost of goods sold are found out by adding opening stock and deducting closing stock from cost of goods manufactured.

In the given scenario we had to follow reverse order to reach out at amount of cost of goods manufactured.

4 0
3 years ago
Read 2 more answers
"In connection with a new issue offering of a sought-after tech company issue, the underwriter offers shares to the officers of
MA_775_DIABLO [31]

Answer:

Under FINRA rules, this is:

A conflict of interest.

Explanation:

The underwriter has advised on the potential acquisition and is now offering the shares to the officers of the manufacturing company that hired the underwriting firm.  The underwriter should have allowed the officers of the manufacturing company to purchase the shares on their own since it is a public offering and not a private placement.  The information is already in the public domain.   By offering the shares directly to the officers, it looks as if the underwriter is trying to compensate them for the contract it received earlier.

5 0
3 years ago
Grant Company gathered the following reconciling information in preparing its July bank reconciliation:
never [62]

Answer:

The answer is $4,160

Explanation:

Cash balance per book contains the items already in the bank statement with the bank and not in the cash book with Grant company.

GRANT COMPANY

Adjusted cash balance per book July31

Cash balance per books $3,500

Notes receivable and interest

collected by bank. $850

Bank charge for check printing ($20)

NSF check ($170)

Adjusted cash balance per books $4,160

3 0
3 years ago
Other questions:
  • Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2019, for $151,200. He lived in the house
    9·1 answer
  • Ben works at a top accounting firm in Salt Lake City and his responsibilities include developing reports for each salesperson, p
    11·1 answer
  • What is the primary difference between a static budget and a flexible budget? Select one: a. The static budget contains only fix
    12·2 answers
  • According to the information provided in english 120, why might a subject encyclopedia be useful to start a research project?
    11·1 answer
  • Which of the following is an example of peakminusload ​pricing? A. charging less for vacations to Hawaii during December and Jan
    5·2 answers
  • Deposit insurance is: private insurance by depositors to guarantee against a bank run that would affect deposits. government ins
    11·1 answer
  • Paul began his speech as follows: they called lou gehrig the iron horse. this tireless worker played an astounding 2,130 consecu
    9·1 answer
  • State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash fl
    11·1 answer
  • An offeree whose acceptance is not a mirror of the offer has made a counter offer.
    14·1 answer
  • U.S. businesses consider the Foreign Corrupt Practices Act as legislation that has helped increase their profits abroad.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!