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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
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An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery c
Nikolay [14]

Answer:

$172.25

Explanation:

initial outlay for the project = -$350

cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80

using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25

we can also do it manually:

NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25

6 0
3 years ago
Flores Company, which uses labor hours to apply overhead to manufacturing, may have increased amounts of underapplied overhead a
4vir4ik [10]

Answer:

employees are hit hard with a widespread outbreak of the flu.

Explanation:

From the question,we are informed about Flor Company, which uses labor hours to apply overhead to manufacturing, may have increased amounts of underapplied overhead at month-end if employees are hit hard with a widespread outbreak of the flu.

The labour hour is those hours that employee needs to work in order to get his/her hourly wage so if employees are hit hard with a widespread outbreak of the flu then

Overhead (Current expenses uses in the running of that particular business at that time ) will reduce.

8 0
3 years ago
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called _________
soldier1979 [14.2K]

Answer:

c

Explanation:

Multinational market regions are groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers.

Types of multinational market regions

  1. Regional Cooperation Groups.
  2. Free Trade Area  
  3. Customs Union.
  4. Common Market  
  5. Political Union
3 0
3 years ago
Which hr competency refers to the ways hr employees guide others in the organization?
Kazeer [188]

The HR consultation is the branch of Hr competence which refers to the ways hr employees guide others in the organization.

<h3>What is an HR consultation?</h3>

This refers to the practice of delivering all aspects of human resource management as an external provider including client development, contracts and client management.

Therefore, the HR consultation is the branch of Hr competence which refers to the ways hr employees guide others in the organization.

Read more about HR consultation

brainly.com/question/14866353

#SPJ1

8 0
2 years ago
Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted
atroni [7]

Answer:

c. $4,055

Explanation:

Adjusted cash balance per books = unadjusted cash balance on 5/31 + note receivable and interest collected by bank - bank charges for check printing - NSF Check

= 3445 + 818 - 43 -165

= $4055

8 0
3 years ago
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