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Alecsey [184]
2 years ago
7

You win a lottery with a prize of $1.5 million. unfortunately the prize is paid in 10 equal annual installments. the first payme

nt is next year. how much is the prize really worth? the discount rate is 8 %.
Business
1 answer:
8090 [49]2 years ago
3 0

Answer:

PV= $1,006,512.21

Explanation:

Giving the following information:

Annual payments= $150,000

Discount rate= 8%

Number of periods= 10 years

<u>First, we need to calculate the future value using the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {150,000*[(1.08^10) - 1]} / 0.08

FV= $2,172,984.37

<u>Now, we can determine the present value:</u>

PV= FV/(1+i)^n

PV= 2,172,984.37/(1.08^10)

PV= $1,006,512.21

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Answer and Explanation:

Data provided in the question

defect rate i.e. \bar p = 1.50%

the sample size = n = 200

Now

S_p = \sqrt{\frac{\bar p (1 - \bar p)}{n} } \\\\= \sqrt{\frac{1.50\% (1 - 1.50\%)}{200} }

= 0.008595057

Now the 3 sigma control limits is

UCL_p = \bar p + 35p

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LCL_p = \bar p - 35p

= 0.015 - 3 (0.008595057 )

= 0

hence, the 3 sigma control limits are UCL 0.04078517 and LCL 0 respectively

7 0
2 years ago
four ways in which the government can ensure that Road Accident Fund benefits are given to deserving beneficiaries
OLga [1]

1)   Road accident officials may visit the claimant in person, to confirm the authenticity of the claim.

 

<span>2)   The RAF should reinstate their existing system (the fault-based compensation system) with a new system proposed in the high court, called the Road Accident Fund Benefit Scheme (RABS) – a no fault benefit system – that will pardon the affected driver from civil liability.</span>

 

<span>3)   Certify that there is slight intermediary intervention as possible. For instance, lessen the amount that lawyers take as a cut from pay-out.</span>

 

<span>4)   Utilize more efficient employees, who can make certain that the administrative side of the RAF runs as reasonably and smoothly as possible, with as little deceitful behavior and corruption as possible.  </span>

<span> </span>

3 0
1 year ago
Read 2 more answers
Lori had a great day at work and has a positive attitude. When she arrives home, she maintains this positive attitude and is in
kondaur [170]

Answer:

b. work-family enrichment

Explanation:

Based on the scenario being described within the question it can be said that in this situation Lori is experiencing the concept of work-family enrichment. This term refers to when an individual's experience in what role of their lives improves the quality of life in another role. Such as in this scenario Lori's great experience at work improved her attitude in her family environment and role as a mother.

8 0
2 years ago
As a major steel manufacturer, SteelMakers Inc. focuses on having the most efficient manufacturing processes in place. The compa
salantis [7]

Answer: Production orientation

     

Explanation: It refers to a strategy when the company focuses only to provide the best quality product in the market without taking into consideration the preference of the customers.

In the given case, Steel makers are focusing on making their business process the best in market so that they can gain a competitive advantage.

  Thus, from the above we can conclude that the correct option is C.

6 0
2 years ago
A 20-year annuity pays 100 every other year beginning at the end of the second year, with additional payments of 300 each at the
aleksley [76]

Answer:

Approximately 1310

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= 100 / 1.042 + 300 / 1.043 + 100 / 1.044 + 100 / 1.046 + 100 / 1.048 + 300 / 1.049 + 100 / 1.0410 + 100 / 1.0412 + 100 / 1.0414 + 300 / 1.0415 + 100 / 1.0416 + 100 / 1.0418 + 100 / 1.0420

= 1,310 Approximately

8 0
1 year ago
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