suppose you win the publishers clearinghouse $10 million sweepstakes. the money is paid in equal annual installments of $333,333.33 over 30 years. if the appropriate discount rate is 5%, how much is the sweepstakes actually worth today?

If you won sweepstakes for 100,000 should you recieve winnings up front in cash or accept annual payment of 12,000 for 15yrs explain

you have just taken out an installment loan in the amount of $100,000. the annual interest rate on the loan is 8%. the loan will be repaid in 25 equal annual installments with the first payment due one year from today. how much of your second yearly payment will go toward the repayment of principle? show all your work include your calculator tvm solver work.

Suppose you are offered $5,000 today but must make the following payments.

Year Cash Flows ($)

0 5,000

1 -2,500

2 -2,000

3 -1,000

4 -1,000

a. What is the IRR of this offer?

b. If the appropriate discount rate is 10 percent, should you accept this offer?

c. If the appropriate discount rate is 20 percent, should you accept this offer?

d. What is the NPV of the offer if appropriate discount rate is 10 percent? 20 percent?

e. Are the decisions under the NPV rule in part (d) consistent with those of the IRR rule?