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Black_prince [1.1K]
2 years ago
14

You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 equal annual installments. The first payme

nt is next year. How much is the prize really worth
Business
1 answer:
EastWind [94]2 years ago
3 0

The prize is really worth $1,006,512.21.

<h3>What is present value?</h3>

Present value is the sum of cash flows discounted at the rate of interest or the discount rate.  The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000

The present value can be determined using a financial calculator

Cash flow from year 1 to 10 = $150,000

Discount rate = 8%

Present value = $1,006,512.21

Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.

To learn more about present value, please check: brainly.com/question/25748668

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Answer:

The correct answer is a. quick response and efficient consumer response delivery systems .

Explanation:

Rapid response systems, as the name implies, seeks to simplify the order process by making it as simple and fast as possible. This is of great importance to large store buyers who handle large volumes of inventory and require a quick response on availability and the time it would take for a new order to arrive to fill their shelves. Technology is important in this process because of its ability to generate data instantly, and because the transmission of information is done just a click away.

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3 years ago
A company prepares its income statement by listing all sources of revenues and gains at the top, followed by a list of all expen
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Answer:

Single step income statement

Explanation:

The single step income statement is the simplest form in which an income statement is prepared, e.g.

Revenues:

  • Sales revenues $100
  • Interest income $20               $120

Expenses:

  • Rent expense $30
  • Utilities expense $10
  • Wages and salaries $60       <u>($100)</u>

Income before taxes                         $20

Tax expenses                              <u> ($4.20)</u>

Net income                                   $15.80

A multi-step income statement is more complex, since operating revenues and costs are reported first in order to determine operating income, then other revenues and expenses are introduced and income before taxes is calculated.

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The first of two significant fiscal policy initiatives enacted by the government during the Great Recession, signed in February
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Answer:

b. Economic Stimulus Act of 2008

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3 years ago
A country withholds funding from any college or university that does not accept women at the same rate as men. this action refle
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The state withholds the funding of that specific university because it doesn't reflect the broad economic goal of gender equality. A university should be fair and just in selecting its applicants, either it could be a male or a female.

I hope my answer has come to your help. God bless and have a nice day ahead!

4 0
4 years ago
Read 2 more answers
A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She
GrogVix [38]

Answer:

Consider the following calculations

Explanation:

A. Dividend per Share = Dividend Payout Ratio * Earnings Per Share

Putting the values given to calculate dividend per share we get,

Stages DPS = Payout Ratio * EPS DPS

Stage 1 =0.00*$0.30                         $0

Stage 2 = 0.13*1.95                         $0.25

Stage 3 =0.31 * $ 2.80                         $0.868

Stage 4 = 0.56*$3.40                         $1.90

b. Calculation of Investors After Tax Income from Cash Dividend:-

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= $552.16

After Tax Income = DIvidend ( 1 - Tax Rate)

= $ 552.16 ( 1- 0.15)

= $ 469.34

C:- In Stage II and Stage III for Growth & Expansion respectively, the firm is likely to utilise stock dividend or stock split.

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