Create a new workbook in Excel. Please include an input area and an answer area for...

5. Assume you have won the lottery and have the choice of (1) receiving $1,000,000 now or (2) receiving $120,000 each year for 20 years.

• Opportunity cost of capital is 10 percent; what is the future value of the first option?

• Opportunity cost of capital is 10 percent; what is the future value of the second option?

• Which is the better option? • Opportunity cost of capital is 8 percent; what is the future value of the first option?

• Opportunity cost of capital is 8 percent; what is the future value of the second option?

• Which is the better option?

Solutions

Expert Solution

Part A:

Since, Future Value of Option II > Future Value of Option I, second option is better

Part B:

Since, Future Value of Option II > Future Value of Option I, second option is better

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Create a new workbook in Excel. Please include an input area and an answer area for...

Create a new workbook in Excel. Please include an input area and an answer area for each problem. You will have an answer for each bullet point. Formatting is up to you. Just make sure it is easy to tell where your answers are, and what equation you used in excel to get the answer. 2. If a 6.5 percent annual return can be expected: • How much would a 20-year old person have to put into a retirement fund...

Create a new workbook in Excel. Please include an input area and an answer area for...

Create a new workbook in Excel. Please include an input area and an answer area for each problem. You will have an answer for each bullet point. Formatting is up to you. Just make sure it is easy to tell where your answers are, and what equation you used in excel to get the answer. Assume a farmer has a choice of purchasing either a subsurface drip irrigation (SDI) system or a low energy precision application (LEPA) center pivot. The...

Create a new workbook in Excel. Please include an input area and an answer area for...

Create a new workbook in Excel. Please include an input area and an answer area for each problem. You will have an answer for each bullet point. Formatting is up to you. Just make sure it is easy to tell where your answers are, and what equation you used in excel to get the answer. Given the baseline gross receipts (no water restriction scenario) of irrigated cotton production versus the conversion of irrigated acres to dryland scenario, calculate the net...

Create an excel workbook for the following questions. Answer these questions under your Solver work for...

Create an excel workbook for the following questions. Answer these questions under your Solver work for each respective problem. 1. Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the...

Please answer in excel only. How do I create the graphs in excel and show the...

Please answer in excel only. How do I create the graphs in excel and show the data. Discuss the following two cost functions: TC=20+4Q TC=20+2Q+0.5Q^2 a) Calculate all cost curves and plot these curves on graphs. Total Cost Total Fixed Cost Total Variable Cost Average Total Cost Average Fixed Cost Average Variable Cost Marginal Cost b) In each case, indicate the point at which diminishing returns occur. (For question a), compute the required costs and plot the curves for quantities...

Please show all your work in Excel, please send me the spreadsheet / workbook. What is...

Please show all your work in Excel, please send me the spreadsheet / workbook. What is the market value of the following bond? Coupon 8% Maturity date 2038 Interest paid semiannually Par Value $1000 Market interest rate 10% What is the market value of the following bond? Coupon 9% Maturity date 2028 Interest paid semiannually Par Value $1000 Market interest rate 8% What is the yield to maturity of the following bond? Coupon 9% Maturity date 2027 Interest paid semiannually...

Discuss some of the ways that data can be entered into a new Excel workbook. Next...

Discuss some of the ways that data can be entered into a new Excel workbook. Next explain various ways to customize the appearance of your completed workbook to present the data more professionally.

Please answer each question set on a separate Excel worksheet, labeled appropriately and include excel Formulas...

Please answer each question set on a separate Excel worksheet, labeled appropriately and include excel Formulas Question Set 1. You are in charge of quality control for computer monitors at Dell. You have data on twenty-five batches of monitors, tracking five types of defects: brightness, color, contrast, dead pixels, and stuck pixels. These data are given in the table below. 1. For each defect type, find the average number of defects per batch. So, you should have an average defect...

For this, problem, please include the excel procedure you used to arrive at an answer (screenshots,...

For this, problem, please include the excel procedure you used to arrive at an answer (screenshots, explanation, actual file, etc.). Brokerage Overall Satisfaction with Electronic Trades Satisfaction with Trade Price Satisfaction with Speed of Execution Scottrade, Inc. 3.5 3.4 3.4 Charles Schwab 3.4 3.2 3.3 Fidelity Brokerage Services 3.9 3.1 3.4 TD Ameritrade 3.7 2.9 3.6 E*Trade Financial 2.9 2.9 3.2 (Not listed) 2.7 2.5 3.2 Vanguard Brokerage Services 2.8 2.6 3.8 USAA Brokerage Services 3.6 2.4 3.8 Thinkorswim 2.6...

Create an Excel workbook containing two depreciation schedule templates, each on a separate spreadsheet. One template...

Create an Excel workbook containing two depreciation schedule templates, each on a separate spreadsheet. One template should be a SL depreciation schedule and the other template should be a DDB depreciation schedule. You should construct the spreadsheets using the formulas and cell referencing so that when the value of input variables are altered the calculations which automatically adjust. The spreadsheet columns should include depreciation expense, accumulated depreciation, and book value end of year (see textbook 575-576 for examples). Please note,...

Subjects