Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. congratulations, you have won $1,000,000 in mass l

Congratulations, you have won $1,000,000 in Mass Lottery. Our displeasure is to announce that after taxes...

70.2K

Verified Solution

Question

Finance

Congratulations, you have won $1,000,000 in Mass Lottery. Ourdispleasure is to announce that after taxes your winning is$500,000 (use 10% annual rate) a. How would you like that? b. Onelump sum today? c. In 10 annual installments of $50,000? d. In 20semi-annual installments of $12,500? e. Or, $500,000 in 10 years?Please provide your calculation (on Excel) for each of the optionsusing PV calculations: So, what option do you choose now and why?_________________

Answer & Explanation Solved by verified expert
4.3 Ratings (672 Votes)
I will choose the option One lump sum todayBy deferring the payment I am losing on the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Congratulations, you have won $1,000,000 in Mass Lottery. Ourdispleasure is to announce that after taxes your winning is$500,000 (use 10% annual rate) a. How would you like that? b. Onelump sum today? c. In 10 annual installments of $50,000? d. In 20semi-annual installments of $12,500? e. Or, $500,000 in 10 years?Please provide your calculation (on Excel) for each of the optionsusing PV calculations: So, what option do you choose now and why?_________________

Other questions asked by students

Q

Colgate- Palmolive : The business value of ERP Colgate-Palmolive is a global consumer products company that...

Programming
Q

(1 point) A recent report for a regional airline reported that the mean number of hours...

Basic Math
Q

The annual report of General Mills, maker of Wheaties, Cheerios, and Betty Crocker baking products, for the...

Accounting
Q

What are the disadvantages of using biomass as a source of heat Select all that...

Biology
Q

The following fusion reaction akes place H H2H 6 m 3 27Mer 2 If 2...

Physics
Q

Graph the function given below by moving the vertical asymptote and x intercept then select...

Algebra
Q

10 - Saved Search ferences Mailings Review View...

Accounting
Q

I am a new graduate and just started a new placement with a Auditing firm....

Accounting
Q

Problem 12-1A You are provided with the following information regarding events that occurred at Moore...

Accounting
Q

Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017...

Accounting
Q

b)Estas adquisiciones fueron hechas mediante compra de acciones o mediante compra de activos netos? Explica...

Accounting
Q

Investment Timing Option: Decision-Tree Analysis The Karns Oil Company is deciding whether to drill for...

Finance