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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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We have said that strategic management is an evolution and a destination. What does this mean? Discuss in detail
damaskus [11]

Explanation:

Strategic management is an evolution and a destination due to the fact that the organizational strategy is developed in pursuit of objectives and goals. This means that action plans for achieving goals can be changed according to internal or external interference.

A company's strategy is not inert, so strategic management will be carried out according to the market situation, the internal environment and other variables, so that there is monitoring, organization and strategic coordination of the company according to its environment.

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3 years ago
Robinson Crusoe was trying to decide if they should continue making coin purses or outsource to a supplier. Their fixed costs to
tester [92]

Answer:

852 units

Explanation:

The break-even point is number of unit produced whereas the cost of in house produced equal to selling price of similar products

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3 years ago
The clientele of black & company's audit practice consists primarily of privately-owned small and middle market companies. r
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<span>By winning two new clients in form of publicly owned companies black & company increase its chances to open its services to a broader market. If the audit is successful and the new clients are satisfied black & company could get referrals which would lead to a growing clients base and therefore an increase in profits.</span>
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3 years ago
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A recent survey was conducted to compare the cost of solar energy to the cost of gas or electric energy. Results of the survey r
RoseWind [281]

Answer:

option d) approximately 84%

Explanation:

Data provided in the question:

Mean, m = $92

Standard deviation, s = $13

Now,

we have to calculate percentage of homes will have a monthly utility bill of more than $79 i.e P(X > 79)

also,

P( X > 79) = 1 - P( X < 79)

Z-score for (X = 79 ) = \frac{X-m}{s}

Z = \frac{79-92}{13}

or

Z = -1

From the standard Z value vs P table, we have

P( Z < -1 ) = 0.1587

Thus,

P( X < 79) = P( Z < -1 ) = 0.1587

therefore,

P(X > 79) = 1 - 0.1587

or

P(X > 79) = 0.8413

or

= 0.8413 × 100%

= 84.13%

Hence,

option d) approximately 84%

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3 years ago
Which of the following statements is FALSE?
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Answer: The following statements is false: <u><em>Mutual aid and assistance arrangements and Memorandums of Understanding (MOUs) cannot be used for supplementing incident staff.</em></u>

The above statement is wrong since mutual aid, assistance arrangements and memorandums of understanding can be used for supplementing incident staff.

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