1.

Ben just hit the jackpot in Las Vegas and won $65,000! If he invests it now at a 10% interest rate, how much will it be worth in 15 years?

2.

Jack would like to have $3,500,000 saved by the time he retires in 30years. How much does he need to invest now at a 12% interest rate to fund his retirement goal?

3.

Assume that

Penny accumulates savings of $1.5 million by the time she retires. If she invests this savings at 10%, how much money will she be able to withdraw at the end of each year for 15 years?

4.

Donna plans to invest $3,000 at the end of each year for the next eight

years. Assuming a 14% interest rate, what will her investment be worth eight years from now?

5.

Assuming a 10% interest rate, how much would Rebecca have to invest now to be able to withdraw $12,000 at the end of every year for the next ten years?

6.

Victor

is considering a capital investment that costs $500,000 and will provide the following net cash inflows:

Year	Net Cash Inflow
1. . . . . . .	$304,000
2. . . . . . .	$204,000
3. . . . . . .	$100,000

Using a hurdle rate of 12%, find the NPV of the investment.

7.

What is the IRR of the capital investment described in Question 6?

The IRR is the interest rate at which the investment NPV = 0. We tried 12% in question 6, now we'll try 14%

and calculate the NPV. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.)

Net Present Value (NPV)

= $

The IRR for the project is what percent?

0 O iClick 1 alue af $ (CI Perlods| 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% tValue of Annuity of $1 0.990 0O.E0 0971 0.62 0.52 0913 0928 0.09 0.8930 2 | 0.500 | 0961 943 | 0925 | 0.0T | 0890 | 0857 | 0.525 | 079 0759 | 0743 | 0,718 | 04 30.971 942 0916 0889 0.8840840 0.794 0.750.712 086 0841 0.609 0579 4 0.961 0.92 088 0.555 0.82307 0.735 0.883 0.638 05 0552 0.51B 0.82 5 0.851 0306 0853 082,T84 0747 0681 0621 0,56 0519 04T604304 6 | 0.942 | OBE8 | 0837 | 0.290 | 0.745 | 0706 0630 | 0.564 | 0.50 0 456 | n 410 | 0.370 | 0395 7 | 0.933 | 0.871 0813 | .7B0 | 0711 0.065 0583 | 0.513 | 0.462 | 0400 | 0.354 | 0.314 | 0.279 8 | 0.923 | 0.853 | 07B9 | 0.731 | 0.577 | 0.627 | 0.540 | 0.467 | 0.40 | 0351 | 0.305 | 0.266 | 0.233 9 | 0,914 | 0837 075E | 0703 | 0.645 | 0592 0500 | 0424 | 0,361 0308 | 0263 | 0.225 | 0.194 10 | 0.505 | 0.RE0 0744 | .676 | 0.614 | 0.568 0463 | 0.386 | 0.322 0270 0227 | 0.191 | 0.162 Periods! 1% | 2% | 3% | 4% 15%|6%|8%|10% | 12% | 14% | 16% | 18% | 20% 0.862 0847 0 333 2 1970 | 1942 | 1.913 | 1 BEG | 1859 | 1.533 | 1.783 | 1736 | 16ac-,647 | 11975 | 1| 1528 3 2941 | 2.884 | 2.829 | 2775 2723 | 2673 | 2.577 | 2487 | 2402 | 2.322 | 2246 2.74 | 2.106 43 900 380B 3.717 3.830 3546 3.465 3.3123.170 3.037 2914 2.78 260 2589 990 0.S80 0.971 0.952 09520 26 0909 0830 in 15 yaars? 5 4853 4.713 4.5804543284.212 3.883 3791 360S 3433 3,274 31729 12% imerost rano to 11 0.98B 0.722 0.860 0.585 0627 042 0.360 0.28702370.1950.182 0.13 12 0.88 07E8 0.701 0.625 0.557 0.49 03970.3190.257 0208 0.1B8 0.137 D112 13 | 0.879 | 0773 0681 | 0601 | 0.530 | 0469 | 0368 | 0.290 | 0.229 0.182 | 0.145 | 0.115 | 0.053 14 | 0.870 | 0.768 0881 | 0.577 | 0.505 | 0442 | 0340 | 0.263 | 0.205 0 160 | 0.125 | 0.C89 | 0.078 15 0.851 0743 06420.555 0.431 0.417 0315 0.2390.183 0140 0.108 0.084 0.DE5 20 | 0.820 | 0.673 0554 | 0.456 | 0.377 | 0.312 0215 | 0.149 | 0.104 | 0073 | 0.051 | 0.007 | 0.026 20,T80610 04 0375 0.285 0233 0146 092 00 0038 0024 005 ,010 M | 0.742 | 0.562 0412 | 0.308 | 0.2a1 0.174 0.099 .C67 | 0.033 | 0 izi | 0.012 | 0C07 | 0.DC4 40 0.672 5 03070.208 0.142 0.09 004 0.022 00110005 003 0.001.001 6 5796 | 5601 | 5.417 | 5242 5076 | 4.917 | 4.623 | 4356 | 4.111 | 3.889 | 3.685 3498 | 3326 7 6 728 | 8.472 | B.230 | 6.002 5786 | .582 | 5.206 | 4968 | 4584 | 4.298 | 4,039 3812 | 3.605 B 7652 | 7.325 | 7.020 | 6.733 6463 | 6210 | 5.747 | 5335 | 4.968 | 4.639 | 4.344 | 4078 | 3.837 9 855E | 8.162 | 7785 | 7435 1108 | 6,502 | 624 | 5759 5328 | 4945 | 4.607 | 4303 | 4031 10 9471 | .983 | 8.530 | 8.111 7 722 | 7380 | 6.710 6146 | 5B50 | 5.216 | 4K!3 | 4494 | 4.192 11 10.368 | 9.787 | 9.253 8.760 830 | 7.887 | 7.139 | 6.496 | 5938 | .453 | 6.029 | 4856 | 4327 12 11.255 0575 9.954 9.355 8863 8.3847.536 6.814 6.1945.560 517 47439 13 12134 11.348 106353634 8853 7.94 7.0 424 5542 5342414533 14 13.DC_1.210E 11.295 | 10.563 9899 | 9295 | a244 | 7 367 | 6628 | 6.C02 | 5.468 | 500e | 4.611 15 13.8E5 2849 11933 11.118 10.380 9.712 8.5597806 6311 6.142 5.55 5092 4675 20 15.016 6351 14.577 13.590 122 11.4709.B1B8514 496.623 59 5353 70 25 22 02 9523 17413 15.622 14 094 12.783 10.675 9077 T843 6873 607 5457948 30 251808 | 223| 19.600| 17.292 15372| 13785| 11.253| 9427 8055 | 7.co3 | 6.177 5517 | 4979 105 6.233 5548 4997 rmuch noney will she amount.) inwestmant be af every year for the 40 32835 273523.11519.793 17.159 15046 11925 9.779 8244 PrintDone rate of 12%. Print Done negatve NPv Future Value of $1 Future Value of Annuity of $1 4% | 5% | 6% | 8% | 10%!12% 14% 16%T18% 1 20 1.000 1.000 1.000 1.000 2.010 | 2.02D | 2.cao | 2,04 | 2.53 | 2.60 | 2.60 | 2.100 | 2.120 | 2.140 | 2.160 | 2.150 | 22X 1030 | 1.051 | 1093 | 1125 | 1158 | 1t91 | 1254 | 1331 14% 1482 1561 1.643 1.728 2.074 1.925 21C02.2382488 3472 4.060 5388 5.2045305415 5525 563 5866.105 6.353 6610 6877T.15T442 4.184 424 31 4.375 4.508 5.0B8 051 1912176 1338 1062 21251340141957 1.772 1.974 2195 2436 2.70 2.986 1072 1.11230 1316 140 150714194 22125022863.185 3.583 1287 13 14776185 2144 2478 2833278394.300 1.999 235827733252383 5.160 1.105 | 1219 | 1344 | 1450 | 162S | 1791 2159 2594 | 3.106 3.707 4411 5.234 6.192 1,116 1243134 1531710 18332 A5334945117 .176 7430 6.152 | 6.305 | 6A6B | 6,633 | 6,802 | 6ST5 | 7.335 | 7.716 | 8.115 | 3.536 | B977 | .442 | 930 100 | 10730 | 11.414 | 12142 | 12.916 0.637.438 12300 13233 14.24015.327 16.499 9.3699.T550.159 583 11.02711.491248 135TS 14.776 160551751 1.0 20 758 1 1.462 | Inso | 11.464 | 120:06 | 12578 | 13.181 | 14487 | 15.937 | 175 | 19337 | 21321 | 23.521 | 259se 11.192s 13442042 846 1531 20652304625 7332852150 895 94B7 .583 8.592 9297 10 28313.412192 5.2 15.9171B870 .977 21384 24.13327271 30850 34.93139.58 10.699 1.148 131 17321950 2251 29373486251 788 10.14712.83 130 | 1.658 | 1201 | 279 | 2397 3.172 | 4.177 6.474 7.13a 9,286 11 974 16AU 13,809 | 14,680 | 15,618 | 15,627 | 17.713 | 1B.8B2 | 21.495 | 24523 | 28029 | 32039 | 35736 | 42218 | 497 14947 | 15e74 | 1TCB6 | 18292 | 19se9 | 21015 | 24216 | 27976 | a2 a | ay 581 | 43672 | 50 A1 |196 18.097 729318.59920242159 23278 27.152 31.772 37250 43842 51.80 80972036 22.019 | 24297 | 26.870 | 29.778 | 33,066 | 367B6 | 45.7B2 | 57275 | 72.052 | 91.026 | 115.380 | 14E.B28 | 1be.se 28.2433230 36459 146 47.72754855 73.10E 9347 1333311.71249.214 342.503 4T1.38 24.785 | 4nais | 47335 | 66C#5 | 66439 | 79058 | 113.28a | 164 494 | 24133a | a56 y87 | 530. 312 | 73C348 | 1,181 AL 4888 04027540195.C28 120800 154752 259.057 442593 787.091 1,342.025 230.757 4,183213 7,34385 1 220 1.836 | 2.191 | 2653 | 3207 | 4.661 | 672? 9846 13.743 19.461 27.33 3a.32B 0.B3517.00026.462 40.8762.86995.39B 3.336 1.348 | 1811 | 2427 | 3243 | 4322 | 5743 10DE3 17449 290 500 85,860 143.371 237.375 30 10.248 21.326 46.20.61 188.284 378.721 JE03 1489 T72