--%>
Assignment Help - homework help

Present value of winnings by free payments

You win the Idaho state lottery as well as are entitled to two tax-free payments of $500,000 every. You get the first payment today and the next payment in precisely one year. Suppose the interest rate is a generally high 25 percent. The present value of your winnings value of: (1) $1,000,000. (2) $900,000. (3) $750,000. (4) $666,666.67. (5) $1,250,000.

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Microeconomics

  • Q : NOT price discriminate by monopoly Into

    Into equilibrium, a monopoly which does NOT price discriminate will tend to produce: (w) the socially optimal rate of output. (x) a level of output where price exceeds marginal social cost. (y) lower output at lower prices than a competitive market. (

    		•
  • Q : Predatory behaviour in increase price

    Predatory behavior would not comprise: (w) lowering prices. (x) expanding output. (y) rapid technological innovation. (z) raising prices. Can anybody suggest me the proper explanation for given problem regarding

  • Q : Determine equilibrium price and quantity

    Suppose a growth hormone is introduced that allows dairy farmers to offer 125 million more litres of milk per year at each price. a. Construct new demand and supply curves reflecting this change. Describe with words what happe

    		•
  • Q : Increasing cost industries when

    When resource supply curves facing an industry are positively sloped, in that case the exit of firms which have incurred losses will result in: (w) higher prices and lower output for the industry, although lower average production costs for the surviv

    		•
  • Q : Problem on quantity of Whopper Slushees

    When Adam Smith’s invisible hand executed with no government intervention, this market would be in equilibrium and quantity of Whopper Slushees demanded the quantity supplied would be equivalent at: (i) Price P1. (ii) Quantity Q1. (iii) Price P3. (iv) Quantity Q

    		•
  • Q : Standard categories of economic

    Standard categories of economic discrimination which tend to make income less equally distributed do not comprise: (1) wage discrimination (2) employment discrimination (3) occupational discrimination (4) human capital discrimination (5) income discri

    		•
  • Q : Strategy of lowering then high price in

    Juan, Celia, Cassie and Gupta operated rival gas stations at 4 corners of an intersection. Every one originally charged similar price for their gasoline but after Gupta slashed his prices, Juan and Celia as well as Cassie all shut down. Gupta in that case boosted pric

    		•
  • Q : Unstable Cartel Agreement Cartel

    Cartel agreements tend to be unstable since: (1) outputs are homogenous. (2) cooperation replaces competition. (3) all governments oppose cartels. (4) members have incentives to cheat. (5) All of the above. Hello g

    		•
  • Q : Definition if pure monopsonist Can

    Can someone please help me in finding out the accurate answer from the following question. The pure monopsonist: (1) Is the sole buyer of a specific good or resource in the given market. (2) Can adjust just quantity and therefore is a price-taker in input market. (3)

    		•
  • Q : Monopsony power in the market of labor

    Can someone please help me in finding out the accurate answer from the following question? The firm probable to encompass significant monopsony power in its labor market would be: (v) Big cotton farm in the Texas hiring migrant workers. (w) Textile manufacturer in Hon

    		•