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emmainna [20.7K]
3 years ago
6

You just won a state lottery! The lottery offers you a choice: you may choose a lump sum today, or $89 million in 26 equal annua

l installments at the end of each year. Assume the funds can be invested (yield) at an annual rate of 7.65%. What is the lump sum that would equal the present value of the annual installments
Business
1 answer:
deff fn [24]3 years ago
7 0

Answer:

the lump sum that would equal the present value of the annual installments is $38,163,612

Explanation:

The computation of the lumspum amount is as follows;

= Cash flow × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest)

= $89 million × (1 - (1 + 0.0765)^-26) ÷ 0.0765)

= $38,163,612

Hence, the lump sum that would equal the present value of the annual installments is $38,163,612

Therefore the above is calculated by applying the given formula

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g reported pretax accounting income of $860 million for the current year. Depreciation reported in the tax return in excess of d
Llana [10]

Answer: $380 million

Explanation:

To solve the question, first we have to calculate the depreciation that'll be reported for each year and this will be:

= $1140 million/3 years

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Then, the deferred tax liability related to the excess depreciation will be:

= ($380 million × 30%) + ($380 million ×

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= $114m + $133m + $133m

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2 years ago
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labwork [276]
<span>the marginal utility become negative at  Sixth serving.
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5 0
3 years ago
Suppose that you want to construct a 2-year maturity forward loan commencing in 3 years. The face value of each bond is $1,000.
Alex

Answer:

=830.92/664.94=1.249616507

Explanation:

3 0
3 years ago
Larry and Susan work in an office near 2 Live Stew and Stew-topia, specialty stew restaurants on the same block. Larry notices t
denis-greek [22]

Answer: B. to prove Stew-topia engaged in predatory pricing, you would need to prove that Stewtopia priced stew below average variable cost with the specific intention of driving 2 Live Stew out of business

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Predatory pricing is the pricing of goods in such a way that it is so low that it is even below average variable cost. The logic being that in the Shortrun, if a firm cannot cover it's variable cost, it would have to shutdown.

Larry would therefore be correct in saying that to prove Stew-topia engaged in predatory pricing, it would need to proven that Stewtopia priced stew below average variable cost with the specific intention of driving 2 Live Stew out of business.

8 0
2 years ago
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There will be decrease in profit if dropping of sour cream. So that means Keith Inc would lose $4,000.00

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3 years ago
Read 2 more answers
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