Jared Electronics Company has just won the state award.The state offers the company the following three payout options for after-tax prize money:
1.$50,000 per year at the end of each of the next six years
2.$300,000 (lump sum)now
3.$400,000 (lump sum)six years from now
Calculate the present value of each scenario using an 8% discount rate.Round to nearest whole dollar.
Present value of annuity of $1:
Present value of $1:

Question

Jared Electronics Company has just won the state award.The state offers the company the following three payout options for after-tax prize money:
1.$50,000 per year at the end of each of the next six years
2.$300,000 (lump sum)now
3.$400,000 (lump sum)six years from now
Calculate the present value of each scenario using an 8% discount rate.Round to nearest whole dollar.
Present value of annuity of $1:
  Present value of $1:

Quizplus · Accepted Answer

The Answer of Jared Electronics Company has just won the state award.The state offers the company the following three payout options for after-tax prize money:
1.$50,000 per year at the end of each of the next six years
2.$300,000 (lump sum)now
3.$400,000 (lump sum)six years from now
Calculate the present value of each scenario using an 8% discount rate.Round to nearest whole dollar.
Present value of annuity of $1:
  Present value of $1:

Jared Electronics Company Has Just Won the State Award