Complete all 7 scenarios

updated

Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value of $1 tabl (Click the icon to view the present value of annuity of $1 table.) (Click the icon to view the future value of $1 table.) (Click the icon to view the future value of annulty of \$ table.) Scenarie 1. Daniel just hit the jackpot in Las Vegas and won $25,000 If he invests it now, at a 12% interest rate, how much will it be worth in 20 years? (Round yout answer to the nearest whole dollar). Scenario 2. Bob would ike to have $3,000,000 saved by the time he retires in 40 years. How much does he need to invest now at a 12% interest fate to fund his retirement goal? (Round your answer to the nearest whole dollar.) Present value Scenario 3. Assume that Penny accumulates savings of $2 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 20 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw " Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value of \$1 table.) (Click the icon to view the present value of annuity of $1 table.) (Click the icon to view the future value of \$1 table.) (Click the ican to view the future value of annuity of $1 table.) Scenario 4. Faith plans to invest $3,500 at the end of each year for the next seven years. Assuming a 14% interest rate, what will her investment be worth seven years from now? (Round your answer to the nearest whole dollar.) Future value = Scenario 5. Assuming a 6% interest rate, how much would Amanda have to invest now to be able to withdraw $10,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value = Scenario 6. Michael is considering a capital investment that costs $525,000 and will provide net cash inflows foc three years, Using a hurdle rate of 8%, 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) Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value of \$1 table.) (Click the icon to view the present value of annuity of \$1 table.) (Click the icon to view the future value of \$1 table.) (Click the icon to view the future value of annuity of $1 table.) Present value = Scenario 6. Michael is considering a capital investment that costs $525,000 and will provide net cash inflows for three years. Using a hurdle rate of 8%, 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 8% in question 6 , now wo'li try 10% and calculate the NPV. (Round your answer to the noarest Whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Not Present Value (NPV) = The IRR for the project is Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) (Click the icen to view the futuro value of $1 table.) (Click the icon to view the future value of annuity of $1 table.) Present value = Scenario 6. Michael is col the investment. (Round yc Net Present Value (NPV) Scenario 7. What is the If The IRR is the interest rati whole dollar. Use parenthe Q1. betweon 6% and 8% between 8% and 10% between 10% and 12% asts \$525,000 and will provide pet cash inflows for three years. Using a hurdle rate of 8%, find the NPV of ar. Use parontheses or a minus sign to represent a negative NPV.) ed in Question 6 ? 1. We tried 8% in question 6 , now weil ty 10% and calculate the NPV. (Round your answer to the nearest negative NPV.) 1. Daniel just hit the jackpot in Las Vegas and won $25,000 If he invests it now, at a 12% interest rate, how much will it be worth in 20 years? 2. Bob would like to have $3,000,000 anved 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 Penny accumulates savings of $2 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 yoar for twenty years? 4. Faith plans to invest $3,500 at the end of each year for the next seven years. Assuming a 14% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Amanda have to invest now to be able to withdraw $10,000 at the end of every year for the next nine years? 6. Michael is considering a capital investment that costs $525,000 and will provide the following net cash inflows: pacs. Using a hurdle rate of 8%, find the NPV of e NPVi) pe the NPV. (Round your answer to the nearest he need to invest now at a 12% interest rate to fund his retirement goal? 3. Assume that Penny sccumulates savings of $2 milion 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 twenty years? 4. Faith plans to invest $3,500 at the end of each year for the next seven years. Assuming a 14% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Amanda have to invest now to be able to withdraw $10,000 at the end of every year for the next nine years? 6. Michael is considering a capital investment that costs $525,000 and will provide the following net cash inflows: Using a hurdle rate of 8%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6 ? 1 table.) Using a hurdle rate of 8%. find the NPV of SV.) NPV. (Round your answor to the noarest Future Value of $1 \begin{tabular}{|l|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 1.010 & 1.020 & 1.030 & 1.040 & 1.050 & 1.060 & 1.080 & 1.100 & 1.120 & 1.140 & 1.160 & 1.180 & 1.200 \\ Period 2 & 1.020 & 1.040 & 1.061 & 1.082 & 1.103 & 1.124 & 1.166 & 1.210 & 1.254 & 1.300 & 1.346 & 1.392 & 1.440 \\ Period 3 & 1.030 & 1.061 & 1.093 & 1.125 & 1.158 & 1.191 & 1.260 & 1.331 & 1.405 & 1.482 & 1.561 & 1.643 & 1.728 \\ Period 4 & 1.041 & 1.082 & 1.125 & 1.170 & 1.216 & 1.262 & 1.360 & 1.464 & 1.574 & 1.689 & 1.811 & 1.939 & 2.074 \\ Period 5 & 1.051 & 1.104 & 1.159 & 1.217 & 1.276 & 1.338 & 1.469 & 1.611 & 1.762 & 1.925 & 2.100 & 2.288 & 2.488 \\ Period 6 & 1.062 & 1.126 & 1.194 & 1.265 & 1.340 & 1.419 & 1.587 & 1.772 & 1.974 & 2.195 & 2.436 & 2.700 & 2.986 \\ Period 7 & 1.072 & 1.149 & 1.230 & 1.316 & 1.407 & 1.504 & 1.714 & 1.949 & 2.211 & 2.502 & 2.826 & 3.185 & 3.583 \\ Period 8 & 1.083 & 1.172 & 1.287 & 1.369 & 1.477 & 1.594 & 1.851 & 2.144 & 2.476 & 2.853 & 3.278 & 3.759 & 4.300 \\ Period 9 & 1.094 & 1.195 & 1.305 & 1.423 & 1.551 & 1.689 & 1.999 & 2358 & 2.773 & 3.252 & 3.803 & 4.435 & 5.160 \\ Period 10 & 1.105 & 1.219 & 1.344 & 1.480 & 1.629 & 1.791 & 2.159 & 2.594 & 3.106 & 3.707 & 4.411 & 5.234 & 6.192 \\ Period 11 & 1.116 & 1.243 & 1.384 & 1.539 & 1.710 & 1.896 & 2.332 & 2.853 & 3.479 & 4.226 & 5.117 & 6.176 & 7.430 \\ Period 12 & 1.127 & 1.268 & 1.426 & 1.601 & 1.796 & 2.012 & 2.518 & 3.138 & 3.896 & 4.818 & 5.936 & 7.288 & 8.916 \\ Period 13 & 1.138 & 1.294 & 1.469 & 1.665 & 1.886 & 2.133 & 2.720 & 3.452 & 4.363 & 5.492 & 6.886 & 8.599 & 10.699 \\ Period 14 & 1.149 & 1.319 & 1.513 & 1.732 & 1.980 & 2.261 & 2.937 & 3.797 & 4.887 & 6.261 & 7.983 & 10.147 & 12.839 \\ Period 15 & 1.161 & 1.346 & 1.558 & 1.801 & 2.079 & 2.397 & 3.172 & 4.177 & 5.474 & 7.138 & 9.266 & 11.974 & 15.407 \\ \hline \end{tabular} hg a hurdle rate of 8%, find the NPV of V. (Round your answer to the nearest (s+1 table.) (table.) Using a hurdie rate of 8%, find the NPV of PV.) NPV: (Round your answer to the nearest Using a hurdle rate of 8%, find the NPV of PV.) - NPV. (Round your answer to the nearest