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Rzqust [24]
3 years ago
13

You just won the Powerball and are offered two payment options: 1) Receiving $80 million per year for 25 years beginning at next

year. 2) Receiving $850 million today. What do you choose if r
Business
1 answer:
laila [671]3 years ago
7 0

Answer: $80 million per year for 25 years

Explanation:

The option you should choose is one that will guarantee you the highest present value.

This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.

The annual payment is an annuity so the present value can be calculated by:

Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years

= 80,000,000 * Present value interest factor, 8%, 25 years

= 80,000,000 * 10.6748

= $‭853,984,000‬

<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>

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Answer and Explanation:

1) EHR System which helps in capturing the functionalities and and check for required informations

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2 years ago
An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has
viva [34]

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The market maturity stage is basically known as the longest stage in the product life cycle. In this life cycle stage the organization reaches to the highest level during the demand cycle.

Therefore, Option (A) is correct.  

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3 years ago
Identify which of the following statements is false. A. The AAA balance can be​ negative, but the​ shareholder's basis in the S
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3 years ago
Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have r
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An increase in taxes.

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