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
lyudmila [28]
2 years ago
14

You win the lottery and must decide how to take the payout. Use a 10​% discount rate. What is the present value of $ 12 comma 00

0 a year received at the end of each of the next five ​years?
Business
1 answer:
AlexFokin [52]2 years ago
8 0

Answer:

PV= $45,489.44

Explanation:

Giving the following information:

Discount rate= 10%

Cash flow= $12,000

Number of years= 5

First, we need to calculate future value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {12,000*[(1.1^5) - 1]} / 0.1

FV= $73,261.2

Now, the present value:

PV= FV/(1+i)^n

PV= 73,261.2/1.1^5

PV= $45,489.44

You might be interested in
Smith & Sons obtained a patent for a new optical scanning device. The fees incurred to file for the patent and to defend the
Tatiana [17]

Answer:

$3,750                            

Explanation:

Cost of patent             $45,000

Useful Life                       12

Amortization Expense for 2nd year =$3,750 (45,000/12)

Amortization Expense-Patent  Dr.$3,750

Accumulated Amortization-Patent  Cr.$3,750

4 0
2 years ago
Which of the following would likely lead to the greatest improvement in health status of the population in the United States?A.
Grace [21]

Answer:

D. Improved lifestyles, including reductions in the use of tobacco, alcohol, and drugs.

Explanation:

It is in the hands of a person to manage his health Therefore, If he/she improves the lifestyle and eats healthy and exercises daily. One can improve his/her health drastically.

7 0
2 years ago
Financial intermediaries
Lesechka [4]
1.d.exacerbate all of the problems caused by asymmetric information
2.d.it is concentrating the loan risks
4 0
3 years ago
Which of the following modes of transportation would probably be the most energy efficient for traveling from New York to Los An
Anna11 [10]
D because many people are travelling together and the train can occasionally coast due to level travel and the greater the mass the more often the momentum
5 0
3 years ago
On January 1, 2015, Lake Co. purchased a machine for $1,056,000 and calculated depreciation using the straight-line method, with
melamori03 [73]

Answer:

$584,000

Explanation:

The computation of the accumulated depreciation is shown below:

But before that following calculations need to be determined

Depreciation for 3 years = $1,056,000 ÷ 8 years × 3 years

= $396,000

Now the written down value is

= $1,056,000 - $396,000 - $96,000

= $564,000

For one year it would be

= $564,000 ÷ 3

= $188,000

Now the accumulated depreciation is

= $396,000 + $188,000

= $584,000

7 0
3 years ago
Other questions:
  • (tco 7) which access control method is characterized by the information owner being responsible for assigning privileges to appr
    6·1 answer
  • When a municipal dealer gives a customer a "bond appraisal," he is disclosing:_________.
    12·1 answer
  • Leupold & Stevens, Inc., makes Leupold scopes for rifles and has introduced a new scope that has the quality and performance
    13·1 answer
  • On February 20 , 2018, Bill purchased stock in Pink Corporation (the stock is not small business stock) for $1,000. On May 1, 20
    15·1 answer
  • A nonbottleneck worker currently has an idle time of 20 seconds per unit. Because of the large demand, the company improves the
    10·1 answer
  • You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the por
    9·1 answer
  • Sales $ 100,000 Operating expenses $ 94,000 Operating assets $ 40,000 Stockholder's equity $ 25,000 Cost of capital 10 % What is
    13·1 answer
  • Overzealous pursuit of wealth, pressure to exceed performance standards, and a culture that values profits more than ethical beh
    14·1 answer
  • Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 12% and a standard de
    7·1 answer
  • Qualification certification and credentialing personnel are part of which nims management.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!