Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. felice lucas has just won the state lottery and ha

Felice Lucas has just won the state lottery and has the following three payout options...

90.2K

Verified Solution

Question

Accounting

image

Felice Lucas has just won the state lottery and has the following three payout options for after - tax prize money: 1. $160,000 per year at the end of each of the next six years 2. $314,000 (lump sum) now 3. $510,000 (lump sum) six years from now The annual discount rate is 9%. Compute the present value of the first option. (Round your answer to the nearest whole dollar.) Present value of an ordinary annuity of $1: 8% 9% 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 3.312 3.240 3.170 3.993 3.890 3.791 4.623 4.486 4.355 5.206 5.033 4.868 AWN 9% Present value of $1: 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 OWN 0.917 0.842 0.772 0.708 0.650 0.596 0.547 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 O A. $800,000 OB. $717,760 OC. $474,000 OD. $459,051

Answer & Explanation Solved by verified expert
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

Other questions asked by students