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All data table in blue icon are attached below. enlarge to view Thank you Solve various time value of money scenarios. i (Click the icon
All data table in blue icon are attached below. enlarge to view Thank you
Solve various time value of money scenarios. i (Click the icon to view the scenarios.) (Click the icon to view the present value table.) (Click the icon to view the future value table.) (Click the icon to view the present value of annuity table.) (Click the icon to view the future value of annuity table.) Scenario 1. Florence just hit the jackpot in Las Vegas and won $30,000! If she invests it now at a 12% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar.) = Future value Scenario 2. Curtis would like to have $2,500,000 saved by the time he retires in 40 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? (Round your answer to the nearest whole dollar.) Present value = Scenario 3. Assume that Yvonne accumulates savings of $1.5 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for 20 years? (Round your answer to the nearest whole dollar and enter it as a positive amount.) Amount able to withdraw Scenario 4. Edith plans to invest $3,500 at the end of each year for the next 8 years. Assuming a 10% interest rate, what will her investment be worth 8 years from now? (Round your answer to the nearest whole dollar.) Future value Scenario 5. Assuming a 6% interest rate, how much would Vanna have to invest now to be able to withdraw $14,000 at the end of every year for the next 9 years? (Round your answer to the nearest whole dollar.) Present value = Scenario 6. Aaron is considering a capital investment that costs $495,000 and will provide net cash inflows for three years. Using a hurdle rate of 12%, find the NPV of the investment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV) Scenario 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 proiect is -X Data Table - X Data Table - More Info Future Value of $1 table.) Present Value of $1 Periods 6% 8% 10% 12% 14% ble.) Periods 6% 8% 10% 12% 14% 1 1.080 1.080 1.120 1.140 1.100 1.210 she retires for 20 1 1 0.943 0.926 0.909 0.893 0.877 as a 2 1.124 1.166 1.254 1.300 2 0.826 0.797 0.890 0.857 0.769 3 1.191 1.280 1.331 1.405 1.482 3 4 1.282 1.360 1.484 1.574 1.889 0.675 0.592 neare rs. Assum 4 0.840 0.794 0.792 0.735 0.747 0.681 0.751 0.712 0.683 0.636 0.621 0.567 5 1.338 1.611 1.469 1.762 1. Florence just hit the jackpot in Las Vegas and won $30,000! If she invests it now at a 129 interest rate, how much will it be worth in 20 years? 2. Curtis would like to have $2,500,000 saved by the time he retires in 40 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? 3. Assume that Yvonne accumulates savings of $1.5 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for 20 years? 4. Edith plans to invest $3.500 at the end of each year for the next 8 years. Assuming a 10% interest rate, what will the investment be worth 8 years from now? 5. Assuming a 6% interest rate, how much would Vanna have to invest now to be able to withdraw $14,000 at the end of every year for the next 9 years? 6. Aaron is considering a capital investment that costs $495.000 and will provide the following net cash inflows: 1.925 5 0.519 6 1.419 1.587 1.772 1.974 2.195 2.502 6 0.705 0.630 0.507 0.456 7 1.504 1.714 1.949 2.211 0.564 0.513 how to be a st whd 7 0.665 0.583 0.452 0.400 8 1.594 1.851 2.144 2.478 2.853 er 8 0.627 0.540 0.351 9 1.889 2.358 2.773 1.999 2.159 3.252 3.707 9 0.592 0.467 0.404 0.424 0.361 0.386 0.322 0.500 0.308 10 1.791 2.594 provide ng 3.108 nswer present Year Net Cash Inflow 10 0.558 0.463 0.270 15 2.397 3.172 4.177 5.474 7.138 1..... 15 0.417 0.315 0.239 0.183 0.140 20 3.207 4.681 6.728 9.646 13.743 $200,000 S202,000 2.... 20 0.312 0.215 0.104 0.073 30 5.743 10.063 17.449 29.960 50.950 0.149 0.057 3 $106,000 30 0.174 0.099 0.033 0.020 40 10.286 21.725 45.259 93.051 188.884 estion 8, nd ses oll 40 0.097 0.048 0.022 0.011 0.005 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? Print Done Print Done Print Done - X i Data Table Data Table Future Value of Annuity of $1 6% 8% 10% 12% Periods 14% much mol Periods 14% Present Value of Annuity of $1 6% 8% 10% 12% 0.943 0.926 0.909 0.893 1.833 1.783 1.738 1.690 1 0.877 1.000 1.000 1.000 1.000 1 2 1.000 2.140 2 2.080 2.100 1.647 2.120 2.060 3.184 3 3 2.487 2.673 2.577 3.246 3.310 2.322 stment be 3.374 3.440 2.402 4 3.465 4 3.312 3.170 3.037 4.375 4.506 4.641 4.779 4.921 2.914 3.433 5 4.212 5 3.993 6.105 5.637 6.353 3.791 3.805 6.610 5.867 7.338 Fry year 6 6.975 7.716 8.115 4.917 3.889 4.623 4.355 8.536 4.111 4.564 7 7 4.288 5.582 8.394 9.487 4.868 8.923 10.089 10.730 5.206 5.747 8 6.210 5.335 4.988 4.639 00 9.897 10.637 13.233 urdle rate 11.436 13.579 12.300 14.778 9 9 11.491 12.488 6.802 6.247 5.759 16.085 5.328 4.946 10 7.360 6.710 6.145 5.650 13.181 14.487 15.937 17.549 19.337 5.216 15 15 27.152 23.276 6.142 7.606 31.772 37.280 9.712 43.842 8.559 6.811 7.469 20 38.786 8.514 57.275 11.470 9.818 8 8 8 8 45.762 6.623 72.052 91.025 Round y 30 9.427 13.765 11.258 8.055 7.003 79.058 113.280 164.490 241.330 356.790 154.760 259.080 442.590 787.090 1,342.000 40 15.046 11.925 9.779 8.244 7.105 Print Done Print DoneStep by Step Solution
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