SUNY Morrisville Finance Questions in Excel Worksheet

User Generated

qnivf958

Business Finance

SUNY Morrisville

Description

Greetings I have a worksheet of 5 questions which are in the attachments. The answers must be put in the excel spread sheet with the work shown of how you got the answers.

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You just won the lottery worth $545M. Remember, you could have taken the 26 annual payments, but you feel that you could invest better than NYS and decided to take a lump sum. You cannot forget to pay NYS and Federal income taxes of 7.3% and 30.0%, respectively. Because interest rates have fallen over the past years, NYS discounts the annual payments at 5.5%. 1. What is the lump sum amount that you would receive before taxes from the lottery office? 2. What is the lump sum after taxes that would be deposited into your checking or savings account after taxes? 3. If you could invest all the winnings at 8.2% on average, what would your annual before-tax return be on average? 4. What would your annual after-tax return on the investment be on average? 5. What are the first three phone calls you need to make in order to prepare for these winnings?
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Explanation & Answer

Hey there :) Please see the attached excel file. I tried to show as much work as possible, so everything should be pretty straightforward. I wasn't too sure what was meant by the first three calls you would make after winning the lottery, but I am assuming it was somewhat subjective. So I put the top...


Anonymous
Really helpful material, saved me a great deal of time.

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