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 60 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
Excellent

ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

What makes tea so good What makes tea so good
A Sense of Ethnicity A Sense of Ethnicity
Who Makes The Decisions at Home? Who Makes The Decisions at Home?
Monkey Experiment: Sense of Fairness Monkey Experiment: Sense of Fairness
An athlete facial expression after winning a gold medal An athlete facial expression after winning a gold medal
Selected Narrow Sense Heritability (h2) Values for Animals and Plants Selected Narrow Sense Heritability (h2) Values for Animals and Plants
Video: Effect of blood chemistry - stimuli, hyperventilation response and hypoventilation response

For a complete list of videos, visit our video library