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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.

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Answer:

The correct answer is (a)- asset.

Explanation:

An asset is a resource with value that someone owns with the intention of generating a future benefit (whether economic or not). In accounting, it represents all the assets and rights of a company, acquired in the past and with which they hope to obtain future benefits.

They have in common that they are the result of past events and are capable of generating economic returns in the future. All assets have the potential to bring money to the business, whether through use, sale, or exchange. Examples of assets are a premises, a van, a patent, a computer, raw materials, financial investments or collection rights.

4 0
4 years ago
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Frictional and structural unemployment can be alleviated by implementing a supply-side policy such as 19) A) * decreasing govern
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Answer: the government giving tax breaks to companies locating in poor geographic areas.

Explanation:

4 0
3 years ago
The amount of the average investment for a proposed investment of $218,000 in a fixed asset with a useful life of four years, st
MissTica

Answer:

$109,000

Explanation:

Average Investment = ( Initial Investment + Residual Value ) ÷ 2

Therefore,

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8 0
3 years ago
A prepurchase inspection is different from a pre-sale inspection in there
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These inspections are mostly connected to property purchase. The pre-sale inspection is conducted by investors and real estate agents who deal with the property. A pre-purchase inspection is conducted by the buyer who wants to purchase the property. Both are conducted as means of security.
8 0
4 years ago
Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and y
11111nata11111 [884]

Answer: 1. real GDP declined.

Explanation:

If labor productivity fell yet the workforce did not increase, that means that for Years 1 and 2, workers were producing less than they were producing before because the same number of people were producing.

This means that the amount of goods produced in the country would reduce and therefore GDP would reduce as well as GDP is the amount of goods and services produced in a country. If labor productivity had fallen yet the work-hours had increased, the increase in worker hours would have made up for the loss of labor productivity.

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3 years ago
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