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3 years ago

You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today

Business

1 answer:

Anit [1.1K]3 years ago

5 0

Answer:

$43,294.77

Explanation:

Here is the full question used in answering this quetion :

You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today if the market interest rate is 5%?

Present value is the sum of discounted cash flows

PV can be calculated with a financial calculator

Cash flow in year 1 - 5 = $10,000

i = 5%

PV = $43,294.77

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago

Given the following data for the Sheridan Company: Current liabilities $ 510 Long-term debt 340 Common stock 600 Retained earnin

krek1111 [17]

Answer:

24%

Explanation:

Given that,

Current liabilities = $ 510

Long-term debt = $340

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3 years ago

Assuming suppliers produce 75 lawnmowers per week:

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4 years ago