You and 11 coworkers just won 6 million that's 500k each from state lottery, assuming you each receive your share over 19 years and that the state lottery earns 3 percent return on its funds, what is the present value of your prize before taxes if you request up front cash
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You and 11 coworkers just won 6 million that's 500k each from state lottery, assuming you each receive your share over 19 years and that the state lottery earns 3 percent return on its funds, what is the present value of your prize before taxes if you request up front cash ..
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- You and 11 coworkers just won 6 million 500k each from state lottery, assuming you each receive your share over 19 years and that the state lottery earns 3 percent return on its funds, what is the present value of your prize before taxes if you request up front cash ..Here's a question you and 11 coworkers won 19 million which is 1,583,333.33 each from a lottery. If we are assuming you each received your share over 18 years and state lottery earns a 6 percent return on its funds , what is the present value of your prize before taxes if you request the up front cash option? Round answer to nearest dollarThe Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state’snewest millionaire. By choosing the six winning numbers on last week’s state lottery, Mr. Ormsby has wonthe week’s grand prize totaling $1.6 million. The State Lottery Commission has indicated that Mr. Ormsbywill receive his prize in 20 annual installments of $80,000 each.Required:1. If Mr. Ormsby can invest money at a 12% rate of return, what is the present value of his winnings?2. Is it correct to say that Mr. Ormsby is the “state’s newest millionaire”? Explain your answer.
- You and 11 coworkers just won $1616 million ($1 comma 333 comma 333.331,333,333.33 each) from the state lottery. Assuming you each receive your share over 1717 years and that the state lottery earns a 66 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option?I solved the problem, but please put the information you provided in an excel spreadsheet to get the answers I have please and explain the steps/formula used. 1. John won a $45 million lottery today. The payout is the following: John gets $1.5 million today and $1.5 million each year for the next 29 years. How much money worth today for the lottery assuming John’s federal tax rate is 39.6%, state tax is 8.5% and his annual discount rate is 12%? Annual Discount Rate = 12% Annual Income = 1.5 million Annual Federal Tax = 39.6% * 1.5 million = 0.594 million Annual State Tax = 8.5% * 1.5 million = 0.1275 million Annual Net Income = 1.5 million - 0.594 million - 0.1275 million = 0.7785 million Calculate Total Present Value by using the PVOA Formula. Annuity Factor i = 12% ; time = 29 years ; Factor = 8.0218 PVOA = PMT x Annuity Factor = 0.7785 x 8.0218 = 6.244971 million Total PV = Initial Net Income + PVOA = 0.7785 million + 6.244971 million = 7.02 millionI solved the problems, but please put the information you provided in an excel spreadsheet to get the answers I have please. 1. John won a $45 million lottery today. The payout is the following: John gets $1.5 million today and $1.5 million each year for the next 29 years. How much money worth today for the lottery assuming John’s federal tax rate is 39.6%, state tax is 8.5% and his annual discount rate is 12%? Annual Discount Rate = 12% Annual Income = 1.5 million Annual Federal Tax = 39.6% * 1.5 million = 0.594 million Annual State Tax = 8.5% * 1.5 million = 0.1275 million Annual Net Income = 1.5 million - 0.594 million - 0.1275 million = 0.7785 million Calculate Total Present Value by using the PVOA Formula. Annuity Factor i = 12% ; time = 29 years ; Factor = 8.0218 PVOA = PMT x Annuity Factor = 0.7785 x 8.0218 = 6.244971 million Total PV = Initial Net Income + PVOA = 0.7785 million + 6.244971 million = 7.02 million 2. You are offered the opportunity to put some money away for…
- the lottery commission wants to be able to withdraw $400,000 at the beginning of each year for twenty years to cover annual payments due to Randy who won 8 million. How much does the commission need to invest today in an account paying 3.6% compounded annually to provide these payments?A college student is reported in the newspaper as having won $10,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $10 million now. Instead she will receive $500,000 at the end of the year for each of the next 20 years. If the annual interest rate is 6%, what is the present value (today’s amount) that she won? (Ignore taxes.)Several years ago, an individual won $27 million in the state lottery. To pay off the winner, the state planned to make an initial $1 million payment immediately followed by equal annual payments of $1.3 million at the end of each year for the next 20 years. Just before receiving any money, the person offered to sell the winning ticket back to the state for a one-time immediate payment of $14.4 million. If the state uses a 6%/year MARR, should it accept the offer? Use a present worth analysis.
- Several years ago, a man won $27 million in the State Lottery. To pay off the winner, the State planned to make an initial $1 million payment today followed by equal annual payments of $1.3 million at the end of each year for the next 20 years. Just before receiving any money, the man offered to sell the winning ticket back to the State for a one-time immediate payment of $14.4 million. If the State uses a 6%/yr MARR, should the State accept the man’s offer? Use an internal rate of return analysis.You won the state lottery and took the payout as a $1,823,475 lump sum today. Your spouse has decided that you need to invest this money for the next 9 years and can expect it to earn an average annual rate of return of 8.00%. If this comes to pass, how much money will be in the account at the end of the period?John won a $45 million lottery today. The payout is the following: John gets $1.5 million today and $1.5 million each year for the next 29 years. How much money worth today for the lottery assuming John’s federal tax rate is 39.6%, state tax is 8.5% and his annual discount rate is 12%?