Steve Coleman Has Just Won the State Lottery and Has

question 56

Multiple Choice

Steve Coleman has just won the state lottery and has the following three payout options for after-tax prize money:
1.$166,000 per year at the end of each of the next six years
2.$304,000 (lump sum) now
3.$504,000 (lump sum) six years from now
The annual discount rate is 9%.Compute the present value of the second option.(Round to nearest whole dollar. )
Present value of $1:

• A)$670,000
• B)$100,800
• C)$403,200
• D)$304,000

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Definitions:

Part B

Often associated with Medicare, Part B refers to medical insurance coverage for certain services and products not covered by Part A.

Gross Material Requirements Plan

A comprehensive schedule that projects the raw materials needed to meet production demands, factoring in inventory levels and supply lead times.

Time-Phased Schedule

A detailed timeline that outlines when specific tasks or activities should be completed, often used in project management and manufacturing to ensure processes are aligned.

Master Production Schedule

A plan for the production of finished goods that specifies the quantity and timing of each item to be produced.