1. You just won the grand prize in a national writing contest! As your prize, you will receive $2,000 a month for ten years. The prize also includes $5,000 paid at the end of year 5. If you can earn 7 percent, compunded monthly on your money, what is this prize worth to you today?
a. 172,252.71
b. 178,411.06
c. 181,338.40
d. 175,779.74
e. 177,252.71
What inputs do you put into the financial calculator to solve for this?
2. _________ is used to determine the... _________ is used to determine the minimum level of sales required to cover all costs including the cost of capital.
-Sensitivity analysis
-Scenario analysis
-Simulation analysis
-Break-even analysis
-Decision tree analysis