a. Assume that you just $30 million in the Texas lottery, and hence the state will pay you 20 annual payments of $1.5 million at the end of each year. If the rate of return on securities of similar risk to the lottery earning (e. g., the rate on 20-year U. S. Treasury bonds) is 5%, what is the present value of your winnings? - Option 1: a lump sum payment of $30 million up front - Option 2: 20 annual payments of $1.5 million b. Considering this, which option should you take? Explain your answer.

According to the law of demand, there is an inverse relationship between price and quantity demanded. that is, the demand curve for goods and services slopes downward. why?

Investment x offers to pay you $5,700 per year for 9 years, whereas investment y offers to pay you $8,300 per year for 5 years. if the discount rate is 6 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) present value investment x $ investment y $ if the discount rate is 16 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) present value investment x $ investment y

Chuck, a single taxpayer, earns $80,750 in taxable income and $30,750 in interest from an investment in city of heflin bonds. (use the u. s. tax rate schedule.) (do not round intermediate calculations. round your answers to 2 decimal places.)