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
GREYUIT [131]
3 years ago
8

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a serie

s of payments over time. If you pick the lump sum payout, you get $2,950 today. If you pick the payments over time payout, you get three payments: $1,000 today, $1,000 one year from today, and $1,000 two years from today. At an interest rate of 8% per year, you would be better off accepting the payout since it has the greater present value. At an interest rate of 10% per year, you would be better off accepting the payout since it has the greater present value. Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum payout or the payments over time payout. What is the best advice to give your friend
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer:

take the payments over time payout

Explanation:

My personal opinion/advice would be to take the payments over time payout. There are many reasons for this, the first one being that most individuals are not used to receiving large sums of cash and usually end up wasting all the money as soon as they receive it, which usually does not occur if the payments are made over time. The second and more important reason is that if the payments are made over different years your would pay a much lesser amount on taxes every year that passes. This means that the even with the interest rate you would most likely have more overall money if you take the payments over time.

You might be interested in
The pharmaceutical company Merck's new drug Vioxx was a blockbuster, generating revenues of $2.5 billion a year by 2002 and grow
marissa [1.9K]

Merck provides an example of what can happen if a company deviates from its : Core values

<h3>What are core values?</h3>

The core values of an organization are those values we hold, which form the foundation on which we perform work and conduct ourselves.

The core value of a company are those enduring principles that govern it's fundamental conduct towards attainment of it's goals. It is usually a passionate pledge on the principles that the organization stands for.

Hence, Merck provides an example of what can happen if a company deviates from its core values.

Learn more about core values here : brainly.com/question/14595106

6 0
2 years ago
A state passes a law requiring major appliances sold in the state to meet energy consumption standards. which factor in the​ fir
german
<span>This best reflects the broader regulatory environment in which the firm operates. Changes in this environment will undoubtedly have effects on the firms future product offerings and bottom line.</span>
4 0
3 years ago
What do you think would make women's contributions to entrepreneurship more visible and less surprising to people?
ohaa [14]

Answer: They must continue with their work, which goes beyond being housewives.

Explanation: Today women have achieved a lot to be seen as beings who have the ability to undertake large-scale projects. Women should continue working, positioning themselves in direct positions, undertaking, and above all, supporting each other. Women must continue to demonstrate that they too are capable of occupying positions that have been seen only for men. Today we have women presidents of nations, CEOs and giving more contributions to society.

3 0
2 years ago
Read 2 more answers
What are the tips for the car that would also apply to the human body?
IRINA_888 [86]
You can wash the car and you can also wash yourself
3 0
3 years ago
Joe's Jalopies sold one of its warehouses for $300,000 cash plus a tractor with a fair market value of $25,000. The building had
spayn [35]

Answer:

$355,000

Explanation:

Joe's jalopies sold one of its warehouse for $300,000 and a tractor that has a fair market value of $25,000

The warehouse had a mortgage of $50,000 against it.

The adjusted basis was $130,000

Joe had to make a payment of $20,000 in sales commission to the realtor

Therefore, the amount realized by Joe's jalopies can be calculated as follows

=$300,000+$25,000+$50,000-$20,000

= $375,000-$20,000

= $355,000

Hence the amount that was realized by Joe's jalopies is $355,000

7 0
3 years ago
Other questions:
  • The simple form of business ownership ?​
    5·1 answer
  • My job is to take pictures for _____ use by advertising agencies.
    15·2 answers
  • Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine
    13·1 answer
  • The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.
    9·1 answer
  • A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit t
    11·2 answers
  • Help me please.. there is no option on here for Human Resources principals, so I jus clicked business as the subject..
    15·1 answer
  • Define credit default swap. ​
    15·1 answer
  • A credit card had an Apr of 12.87% all of last year and compounded interest daily. What was the credit card's effective interest
    13·1 answer
  • James is an efficient sales professional. However, in the past few months, he hasn’t been performing to the best of his ability
    14·2 answers
  • Whilst you have been away on annual leave the Principal of the agency has exchanged contracts to personally purchase one of your
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!