Question description

 

 

Make sure you can do these simple calculations before bidding

1. You won a lottery that will pay your choice of $1,000,000 per year or a lump sum equal to the present value of $20,000,000 discounted at 5%. Compute the total prize using each payment option. Indicate your choice of payment option showing calculations. Explain the rationale for your choice including both financial and non-financial factors. Be prepared to defend your position through real-life experiences, research, and/or readings.

2. You received an offer to purchase property that includes the following terms: sales price of $650,000, payable as follows: $50,000 at closing, and $200,000 payable one year after closing, two years after closing and three years afterward. Compute the effective sales price under these payment terms. Assume you are concerned with the buyer’s ability to make payments over time, what counter offer would you make that would eliminate concerns over payment terms. Assume $650,000 is the fair market value of the property. Fully explain your rationale. Be prepared to defend your position through real-life experiences, research, and/or readings

250 words each

Submit in separate documents

2 references for each

Please submit in a timely manner as the deadline is a strict one