Solve various time value of money scenarios (Learning Objectives 3, 4)

1. Curt just hit the jackpot in Las Vegas and won $50,000! If he invests it now at a 10% interest rate, how much will it be worth in 15 years?

2. Nathan would like to have $1 million saved by the time he retires in 20 years. How much does he need to invest now at a 14% interest rate to fund his retirement goal?
3. Assume that Lydia accumulates savings of $1,500,000 by the time she retires. If she invests this savings at 8%, how much money will she be able to withdraw at the end of each year for 15 years?
4. Pam plans to invest $3,000 at the end of each year for the next ten years. Assuming a 6% interest rate, what will her investment be worth ten years from now?
5. Assuming a 12% interest rate, how much would Carol have to invest now to be able to withdraw $20,000 at the end of each year for the next ten years?
6. Roger is considering a capital investment that costs $1,145,000 and will provide the following net cash inflows:

Using a hurdle rate of 14%, find the NPV of the investment.
7.What is the IRR of the capital investment described Question 6?

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Year Net Cash Inflow 1 $600,000 2 500,000 3 400,000