Find the cash value of the lottery jackpots given below. Yearly jackpot payments begin immediately. Assume the lottery can invest at the given interest rates. Equal Annual Payments Present Value Jackpot Amount Interest Rate (in dollars) $14,000,000 8% 20 $14,000,000 12% 20 $14,000,000 8% 25 %$4 $14,000,000 12% 25 %$4 (Round to the nearest dollar as needed.)
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- Assume you win a lottery, and you are offered the following stream of payments by the lottery commission: $25,000 today, $32,000 one year from now, another $32,000 two years from now, and a final payment of $55,000 three years from now. You accept the offer. If you invest all of these proceeds at 6% compounded annually and extract nothing from the investment, how much will you have at the end of the fourth year? (RESOURCE: Timing of Cash Flows) NOTE: You can use this equation FV=PV x (1+i)^n or in excel you can use =FV(RATE, NPER(1), 0, AMOUNT(1)), FV=(RATE, NPER(2),0,AMOUNT(2)...... Then add the totals of each rowA lottery claims its grand prize is $15 million, payableover five years at $3,000,000 per year. If the firstpayment is made immediately, what is this grand prizereally worth? Use an interest rate of 7%Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar. (The annual interest rate for all problems is 6%.) n = 3; i = 6% n = 6; i = 3% Future value of 1 1.19102 1.19405 Present value of 1 .83962 .83748 Future value of an annuity 3.18360 6.46841 Present value of an annuity 2.67301 5.41719 Redlands Inc. will need $4,000 on December 31, 2022. The firm will deposit money into a savings account on January 1, 2020, so that it will grow to be $4,000. The account earns annual interest. The amount Redlands must deposit on January 1, 2020, is $
- A lottery claims its grand prize is $10 million, payable over 5 years at $2,000,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use an interest rate of 6%.Assume that you just want 35 million dollars in Florida lottery hence the state will pay 20 annual payments of 1.75 million each beginning immediately. if the rate of return on securities a similar risk to the lottery earnings e.g. The rate of 20 year us Treasury bonds 6% what is the Present value of your winningsYou are planning to buy a lottery ticket for the $226,000,000 jackpot. If you have (option A). The cash option of receiving $154,300,000 today or you can opt to choose (option B.) the 30 payments of $7,533,333. If, average inflation rate is 3%, what is the present value of OPTION B (cash flow option)? (Please use two decimals).
- A real estate investment has the following expected cash flows: Year Cash Flows 1 $14,000 2 19,000 3 19,000 4 25,000 The discount rate is 3 percent. What is the investment’s present value? Round your answer to 2 decimal placesUsing ume value of money tables, calculate the following. (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C., Exhibit 1-D) Note: Use approprlate factor(s) from the tables provided. a. The future value of $490 six years from now at 5 percent. b. The future value of $600 saved each year for 10 years at 7 percent c. The amount a person would have to deposit today (present value) at an interest rate of 7 percent to have $900 five years from now. d. The amount a person would have to deposit today to be able to take out $600 a year for 10 years from an account earning 9 percent. Complete this question by entering your answers in the tabs below. The future value of $600 saved each year for 10 years at? percent. Noter Round time value factor to 3 decimal place and finafapswes to 2 decimal places.You invest money in a fund that paid 9% simple interest paid annually. If it is worth $21,200.00 in 11 months, a) what is the present value? $ b) What is the rate of return? (answer as a percent 2 decimal places)
- If $13,000 had been invested in a certain investment fund on September 30, 2008, it would have been worth $59,102.69 on September 30, 2018. What interest rate, compounded annually, did this investment earn? (Round your answer to two decimal places.)Assume that you start with a $1000 dollar invested in each ETF at the end of 2003. Calculate the evolution of your inves value over time in the yellow highlighted area in columns K and L. The terminal Value of your investment rounded to cents to the following IWM? EEM?Assume a company is going to make an investment of $460,000 in a machine and the following are the cash flows that two different products would bring in years one through four. Option A, Product A Option B, Product B $195,000 $145,000 185,000 175,000 65,000 65,000 25,000 85,000 A. Calculate the payback period of each product. Round your answers to 2 decimal places. Option A, Product A fill in the blank 1 years Option B, Product B fill in the blank 2 years B. Which of the two options would you choose based on the payback method?