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il63 [147K]
4 years ago
11

2. In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual

installments of $23.6 million beginning today or as a single payment today of $334 million. a. What interest rate is the lottery commission using
Business
1 answer:
deff fn [24]4 years ago
3 0

Answer:

5.5%

Explanation:

This is an Annuity Due question. In an annuity due, recurring payments occur at the beginning of the yearIt is asking for the RATE. Using a financial calculator(on BEG mode), input the following;

Duration; N = 25

Recurring payment; PMT = 23.6

Present value ; PV = -334

One-time future cashflow; FV = 0

Then compute the interest rate; CPT I/Y = 5.499%

Therefore, the lottery commission is using about 5.5% interest rate.

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Despite ongoing debates about the appropriateness of macroeconomic policies, many macroeconomists have reached a modern consensu
ser-zykov [4K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
Specialization:
AysviL [449]

Answer:

Specialization can lead to an increase in overall production

Explanation:

We specializes in something we are skilled at and will become better at and so we will be able to produce more of that goods and services

8 0
3 years ago
Digital photography replacing film photography would be an example of a(n) _____. Group of answer choices radical innovation reg
Ratling [72]

Answer:

disruptive innovation.

Explanation:

A disruptive innovation can be defined as an innovation that typically creates a new market for a product by displacing or removing an existing product from the market.

Digital photography replacing film photography would be an example of a disruptive innovation.

4 0
3 years ago
Smith, inc., has maintained an ownership interest in watts corporation for a number of years. this investment has been accounted
Elenna [48]
The amount that the company is worth at that exact time
4 0
4 years ago
You are considering two mutually exclusive projects. Project A costs $3.6 million, has a required return of 14.5 percent, and an
sp2606 [1]

Answer:

Neither

Explanation:

The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The decision rule when using the internal rate of return is to undertake the project if the internal rate of return is greater than the required return of the project. If this is not met, the project should be rejected.

If choosing between multiple projects, the decision rule is to choose the projects with the highest internal rate of return. This is because that project would be the most profitable.

Neither of the project should be selected because the IRR of both projects is less than their required returns

3 0
3 years ago
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