Cash Flow Stream of the State Lottery
Not what you're looking for?
A person wins $1 million in the state lottery. Actually, the person receives $50,000 per year for 20 years. The present value of this is considerably less than $1 million. Using a 10% discount rate, what is the duration of this cash flow stream?
Purchase this Solution
Solution Summary
The expert examines the cash flow of the state lottery. The duration of the cash flow stream is determined.
Solution Preview
Let us have a mental framework of this scenario:
/---------------------/----------------------/-----------------------/------------------------/
0 5 10 15 20
$50,000 $50,000 $50,000 $50,000.........every ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Lean your Process
This quiz will help you understand the basic concepts of Lean.