This topic contains a solution. Click here to go to the answer

Author Question: It ALWAYS makes more sense financially to take the lump sum payout from winning a lottery than ... (Read 59 times)

nevelica

  • Hero Member
  • *****
  • Posts: 563
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
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 :)


robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Excellent

 

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

For a complete list of videos, visit our video library