You are offered the right to receive $1,000 per year forever, starting in one year. If your discount rate is 6%, what is this offer worth to you? This offer is worth $ (Round to the nearest dollar.)
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- You have just won the lottery and will receive $580,000 in one year. You will receive payments for 28 years, which will increase 3 percent per year. The appropriate discount rate is 11 percent. Required: What is the present value of your winnings? $51,626,112 $6,102,947 $6,357,236 $31,217 $51,626,112 Only typed answer and give fastyou have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator to show and explain steps thanksYou win the lottery and are offered the following choices. The appropriate discount rate is 7%. How much is each worth? Which would you choose? a. $3M today and $3M exactly 3 years from today b. $2M a year for 4 years, with the first payment starting exactly one year from today c. $350K a year forever, with the first payment starting one year from today
- You have a chance to buy an annuity that pays $50,000 at the beginning of each year for 15 years. You could earn 10.0% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $418,334.37 $750,000.00 $380,303.98As the winner of a lottery you are promised 15 payments of $0.98 million each year starting a year from now. If the discount rate is 0.095, what is the present value of your winnings? Instruction: Type ONLY your numerical answer in the unit of millions,The executive of a label is looking to purchase a new rental for $3.9 million. Financing is offered for a 3.9% rate over 6 years. If $800,000 is place down towards the entire purchase, what will the monthly payment for the loan be? Use Excel functions to complete the calculation.
- You just landed a great part-time internship with a local firm that will pay you a stipend of$24,000 at the end of each year during your college career. You plan to keep this internship for5 years. What is the present value of this internship at a discount rate of 3% (this calculatesthe real value of your stipend with regards to the effects of inflation of 3% for 5 years)? Showyour answer using a table that shows the Present Value (PV) of each year’s stipend. SUM allthe present values for the five-year period to find the total value of your stipend. Also, calculatethe present value of the five-year stipend by utilizing Excel’s NPV function.You are interested in buying a brand-new jalopy and expect the purchase price to be $19,000. The car dealership can offer financing at a 6% interest rate over 6 years. If you put 1,000 down towards the purchase and accept the financing terms, what will your monthly payment for the loan be? In Excel, I need to know all the steps in Excel for the answer. Everything thing needs to be filled in, so I have all parts answered for this question. Thank You! Please do not use another example in Excel because that is not the way i am supposed to solve it all arguments in EXCEL need to be entered when using PMT in Excel I have the answer I need to show how I came up with that answer using all the arguments in one box not broken down to 2 different steps. Thanks, and here is the answer.298.31 The following are the values given to calculate the monthly payment. The purchase price of the jalopy is $19,000 and down payment is $1,000. Hence, the present value of jalopy is $18,000 ($19,000 - $1,000).…You are interested in buying a brand-new jalopy and expect the purchase price to be $19,000. The car dealership can offer financing at a 6% interest rate over 6 years. If you put 1,000 down towards the purchase and accept the financing terms, what will your monthly payment for the loan be? In Excel, I need to know all the steps in Excel for the answer. Everything thing needs to be filled in, so I have all parts answered for this question. Thank You! Please do not use another example in Excel because that is not the way i am supposed to solve it all arguments in EXCEL need to be entered when using PMT in Excel I have the answer I need to show how I came up with that answer using all the arguments in one box not broken down to 2 different steps. Thanks, and here is the answer.298.31 The following are the values given to calculate the monthly payment. The purchase price of the jalopy is $19,000 and down payment is $1,000. Hence, the present value of jalopy is $18,000 ($19,000 - $1,000).…
- You can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The expected life of the equipment is 8 years. It is expected that the price of the equipment will decrease by 15% per year. If the discount rate is 12%, would you buy the equipment today or will wait to purchase? When is the best time to purchase it? give excel file solutionYou are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn 16 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $400,000 in 10 years and you can earn 16 percent on your money, what is the present value of $400,000? $enter your response here (Round to the nearest cent.)A morning radio show offered the following four prizes as alternative prizes for one of its competitions. Which prize is the most valuable if your discount rate is 6%? (Show working to justify your answer.) (a) $5,000 per year, forever, with the first amount paid after 1 year. (b) $12,000 per year for eight years, with the first amount paid today. (c) $20,000 today and $80,000 six years from now. (d) $15,000 per year for ten years, with the first amount paid at year 5. (e) State the most valuable prize. (Give a reason for your choice.)