This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: It ALWAYS makes more sense financially to take the lump sum payout from winning a lottery than ... (Read 51 times)

nevelica

  • Hero Member
  • *****
  • Posts: 563
on: Jul 10, 2018
It ALWAYS makes more sense financially to take the lump sum payout from winning a lottery than taking the annual cash flows.
 
  Indicate whether the statement is true or false.

Question 2

If we discount the annual payments from winning the lottery at 10, the corresponding present value is greater than if we discount the annual payments at 12.
 
  Indicate whether the statement is true or false.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

orangecrush

  • Sr. Member
  • ****
  • Posts: 350
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: It depends upon the interest rate used to discount the future cash flows.

Answer to Question 2

Answer: TRUE


nevelica

  • Member
  • Posts: 563
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

Jsherida

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

School-age children are often independent and industrious, with a developing sense of self-confidenc School-age children are often independent and industrious, with a developing sense of self-confidenc
The winning sperm The winning sperm
The macula densa and the juxtaglomerular (JG) cells. Osmoreceptors in the macula densa sense low ... The macula densa and the juxtaglomerular (JG) cells. Osmoreceptors in the macula densa sense low ...
Sagittal view of the olfaction (Sense of Smell) Sagittal view of the olfaction (Sense of Smell)
An athlete facial expression after winning a gold medal An athlete facial expression after winning a gold medal
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Video: Dietary Cholesterol & LDL

For a complete list of videos, visit our video library