Solved: Assignment 6-Net Present Value
- To what present value would $20,000 received in five years, assuming an annual discount rate of 5%?
- Benefits received in the future are adjusted to their present value (discounted) because:
- You won a $1,000,000 in the Hoosier Lottery. You can tell your instructors what you really think of them, quit school, quit your job and never have to work another day in your life. You are a free person. Are you really? Your decision with your lottery winnings has 2 options.
- To what present value would $50,000 received in five years, assuming an annual discount rate of 4%?
- To what present value would $250,000 received in ten years, assuming an annual discount rate of 15%?
- To what present value would $500,000 received in six years, assuming an annual discount rate of 5%?
- To what present value would $1,500,000 received in twenty years, assuming an annual discount rate of 9%?
- To what present value would $1,000,000 received in ten years, assuming an annual discount rate of 2%?
- To what present value would $650,000 received in five years, assuming an annual discount rate of 5%?
- The Mega Million payout today is $244,000,000 received in 20 years, assuming an annual discount rate of 3%. What would be the cash option if you win?