Assuming that you had just won $5,000,000 in the lottery, describe the advantages and disadvantages of receiving a lump sum today versus a ten-year annuity. Discuss other factors that are relevant or needed to make this decision
No interest rate is given, but different interest rates can be assumed if necessary to answer this problem.
What will be an ideal response?
Answer: A lump sum would incur a large tax liability. In contrast, an annuity may lower the overall tax liability and would provide yearly payments. This problem does not state an interest rate, so actual computations could be done at different interest rates. The rates could depend upon a your ability to invest and wisely use the money. In general, if you can invest the lump sum winnings at a higher interest rate than implied by the annuity, you should prefer the lump sum.
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The top management of Tasty Foods, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Greg, a division manager for Tasty Foods, has looked at his resources, and he has decided how his division can contribute to the two strategic goals set by upper management: (1) by partnering with another company and (2) by hiring a procurement manager to negotiate lower prices from vendors. Greg's next step is to roll out his ____ to his staff.
A. vision statements B. management guidelines C. codes of ethics D. tactical goals E. operational goals
In a labor surplus, some form of ______ is an option for lowering labor costs without terminating employees.
A. work-sharing B. overtime C. layoff D. downsizing
What must marketers do during the marketing strategy development phase of the new-product development process?
What will be an ideal response?
The proceeds received for when a bond is issued will depend on the ________
a. All of these choices. b. face amount of the bonds, which is the amount due at the maturity date c. market rate of interest d. periodic interest to be paid on the bonds