The present value of the prize, Accounting Basics

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The present value of the prize

Suppose you have a winning sweepstakes ticket and you are given the option of accepting $250,000 three years from now or taking the present value of the $250,000 now. The sponsor of the prize uses a 7% discount rate. If you elect to receive the present value of the prize now what amount will you receive now?

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Accounting Basics: The present value of the prize

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Accounting Basics: The present value of the prize

Reference No:- TGS0686409

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Base of her investment center

Q : The indirect manufacturing support costs for one lawnmower

Q : Plans to finance its operations

Q : Explain the process of preparing interm financial statements

Q : The present value of the prize

Q : What is the present value of the lease payments

Q : Discuss the inventory amounts for an ingredient used

Q : How many annual payments will ann receive

Q : What is the effect on total income if wear company accepts

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: The present value of the prize

Reference No:- TGS0686409

Recent Questions Asked Accounting Basics

Q : Base of her investment center

Q : The indirect manufacturing support costs for one lawnmower

Q : Plans to finance its operations

Q : Explain the process of preparing interm financial statements

Q : The present value of the prize

Q : What is the present value of the lease payments

Q : Discuss the inventory amounts for an ingredient used

Q : How many annual payments will ann receive

Q : What is the effect on total income if wear company accepts

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