Drop down options:

Requirement 1:

Scenario 1, Scenario 2 , Scenario 3 - appears to be the best option

Based on an 8% interest rate, its present value is the - highest, lowest

Requirement 2:

Scenario 1, Scenario 2 , Scenario 3 - appears to be the best option

Based on an 10% interest rate, its present value is the - highest, lowest

Reference Present Value of $1 Periods 1 4% 0.962 0.925 1% 0.990 0.980 0.971 0.961 0.951 3% 0.971 0.943 0.915 2 3 4 2% 0.980 0.961 0.942 0.924 0.906 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 0.855 0.822 0.863 6 7 0.942 0.933 0.923 0.914 0.905 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.630 0.583 0.540 0.500 0.463 0.596 0.547 0.502 0.460 0.422 0.564 0.513 0.467 0.424 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.432 0.376 0.327 0.284 0.247 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 10 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.356 0.326 0.299 0.275 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.187 0.163 0.141 0.123 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 16 17 18 19 20 0.853 0.844 0.836 0.828 0.820 0.728 0.714 0.700 0.686 0.673 0.623 0.605 0.587 0.570 0.554 0.534 0.513 0.494 0.475 0.456 0.458 0.436 0.416 0.396 0.377 0.394 0.371 0.350 0.331 0.312 0.339 0.317 0.296 0.277 0.258 0.292 0.270 0.250 0.232 0.215 0.252 0.231 0.212 0.194 0.178 0.218 0.198 0.180 0.164 0.149 0.163 0.146 0.130 0.116 0.104 0.123 0.108 0.095 0.083 0.073 0.107 0.093 0.081 0.070 0.061 0.093 0.080 0.069 0.060 0.051 0.071 0.060 0.051 0.043 0.037 0.054 0.045 0.038 0.031 0.026 0.093 21 22 23 24 0.811 0.803 0.795 0.788 0.660 0.647 0.634 0.622 0.522 0.507 0.492 0.439 0.422 0.406 0.390 0.359 0.342 0.326 0.310 0.294 0.278 0.262 0.247 0.242 0.226 0.211 0.197 0.199 0.184 0.170 0.158 0.164 0.150 0.138 0.126 0.135 0.123 0.112 0.102 0.064 0.056 0.049 0.043 0.053 0.046 0.040 0.035 0.044 0.038 0.033 0.028 0.031 0.026 0.022 0.019 0.022 0.018 0.015 0.013 0.074 0.066 Reference 9 1 1 13 QQ Q11 Q5 23 Q1 677 Q14 702 $45 . Q:744 876 14 .85 .5 1.544 .5 Q5 50 Q500 1.4 .847 1.502 .4 1.422 Q1.513 .427 @.424 .4 .404 1 2 4 1 2 Q3 Q4 .247 4 Q06 14 .2 .225 11 .27 .28 14 2.1 11 12 1 4 58 Q722 Q1 1 $42 60 1.626 Q601 855 55 800 Q.06 41 827 497 2.4 .442 .417 .46 .444 .415 Q3 .429 40 Q15 366 26 29 25 13 2 2 257 22 2 .1 208 .1 .1 2.140 Q215 .1 1 2.141 .1 1 Q.168 .145 2.125 :10 1 1 17 112 .116 09 4 . 14 16 Q34 31 16 17 1 13 0.844 6 23 20 .72 $23 14 06 5 Q8 84 Q524 Q1.513 .494 475 456 .4 .48 .418 0.39 .28 277 .25 292 Q2 250 .22 216 28 Q231 .212 14 17 Q21 2.1 Q10 14 Q.149 .1 Q.146 2.1 118 14 .1 .1 .0% .0 . 17 Q002 71 Q0 QQ QQ 1 51 QQ Q04 Q1 1 064 046 . 1 .026 1 12 11 1 QQ 47 4 22 Q810 822 42 1.47 2.4 .422 .40 0 Q342 26 1 029 24 2.27 22 247 22 242 226 0211 17 .14 2.1 2.14 .1 1 Q146 Q164 .1 .1 128 2.118 135 Q128 112 102 092 @ .@ @@74 0.066 064 .06 049 043 .044 Q04 QQ4Q Q2 00 024 ] 026 022 13 18 Q022 2015 Q13 @@@ 24 25 27 Q72 64 749 .742 .5 Q5 0574 563 62 2.464 0.40 .4 @.424 2.412 Q347 1 .21 Q26 2.265 24 Q231 220 207 01 Q1 Q174 1 Q11 Q150 141 11 Q138 2.16 Q15 Q098 116 .00 Q17 @@? 75 Q.084 0.0 Q069 . .063 Q47 0042 0.029 0.025 .022 .020 026 023 020 17 Q015 Q.021 QQ QQ18 14 12 004 Q11 QQ12 Q.00 Q.06 Q. .04 4 4 .20 Q142 097 Q046 11 Q4 , 1 372 228 2.141 Q0 4 .024 Q021 Q13 009 , 2001 Q1 X Reference Periods - 2 3 4 5 1% 2% 90 QQ 1970 1942 241 24 3.2 14.53 4.1 1971 1 2 4.5 4% 2 1. 2.76 4.42 5% 62 159 2.72 3546 4.29 Present Value of Ordinary Annuity of $1 6% 10% 43 05 017 1909 1. 1.80 17 1.78 1.78 2673 284 2577 2.51 2.4 3.4 12 3.240 3.1 4.212 14.10 3992 30 12% 14% 10 1.647 24 222 3. 214 606 3. 15% 1. 2.2 2 3 16% 16 2.248 2. 3.274 1% 47 156 2.174 20 3.127 20% 1.52 2.16 25 21 5.796 52 .566 9.41 51 5.417 6.47 230 25 20 .1 .53 5.242 600 $72 .4 .111 5.78 5.78 $468 7.1 722 4. 5.5 21 0 4. 53 5971 6.515 4 4.83 5.2 5.747 $247 10 4.4 50 5.55 5% $41 4.365 4.88 56 5.59 8.147 4.111 4.564 4. 5.32 5. 660 4.23 4. 4.948 5216 3.74 4.1 4.4 4.2 53 4. 444 4. 4. 3.49 3.12 4. 4.303 4.494 38 36 4.1 4.1 1 11 12 13 14 16 1 3.252 11.2 10575 954 12.14 11.4106 34 4 12.1111.2|10.5% 12 49 11.11.11]1 749 4 9.25 3712 3.1 1Q 11 904 .4 244 559 6.45 592& 14 14 7.1 $424 606 $ 11 5.458 5.660 5.342 2 142 5.224 5.421 5.5 5.724 5.347 5 5.137 5342 5.46 5575 4.86 4. 4.10 5.00 5092 4. 4.49 4.58 4.11 4.75 $25 18 17 1 13 14.1 13.5 121111|10.13.447 ] 13 16.582 14.22 | 13.1 | 12.1 | 11.274 | 10.477 .122 844 18 14.2 | 13.754| 129 | 11.60] 10 | 10.059 72 , 8 17.228 168| 14.24 | 13.14] 12| 11.1|108 04 1 04 161 14.7] 13.5] 12.4 | 11.47 | 10.594 1 .19 1 171 16.415 14.0|12.1111.4 |108110 9.22 1980 17] 16.7] 14.41 | 13.1| 12.042 | 11.1 | 10.201 .442 0458 | 1.22 | 16.444 | 14.7 | 13.4| 12.3 | 11.22| 10.371 8 21.24 | 114| 16 | 15.247 | 13.12.11.4 | 10.5 107 4 22 .21 .366 314 $74 120 7.250 .4 6.487 6.560 23 5.4 47 F1 1 $ 5. 5749 51 5 5 5.1 5.222 5.27 5.4$ 5.3 4.7 4.75 4.12 4.44 4. 548 2 21 22 24 6312 7562 45 7.1 4 6.78 5 11 044 5.34 5.410 5.432 5.41 4. 4.909 4.325 4. $44 Reference 7 82 6.472 5 .12 $230 Q , 50 2 6. .46 111 5. 5.48 10 722 5.5 210 2 5971 $515 024 5.206 5.747 $247 10 5 55 5995 $41 4. 5 5.78 6.16 4.84 4. 5.32 550 4.2 4.8 4.48 5.216 4.1 4.4 4.72 5019 4.039 4.244 4. 4. 3.12 4.07 4 4.44 36 4.1 4.12 1 9.471 11 12 13 14 16 $.45 14 6.14 7.1 $424 606 11 5.45 560 542 S002 142 5.234 5.421 5588 5.724 5. 5.02 5.17 542 5.4 5.8 466 4. 4.1 5. 5.02 4. 4.4 4.53 4.11 4.5 128g 3.253 , .49 7.1 11.28] 10.85 54 4 7943 536 7161 12.14 11411 38 3.4 704 .4 13.04 | 12.111.2 | 10.58 39 9.2% 46 244 13 | 1243 | 11. | 11.11 | 1 12 3.1 .888 1 14.71] 13.57 | 12.581 | 11.2|10| 10.1 3.447 1 15.58] 14.22] 13.1 12.1| 11.274| 10.477 37 912 ,544 16 14.|1.74] 12 111011 72 ,66 17.228] 16.87] 14.24] 13.134 | 12] 11.1|108 4 50 1.046|161 | 14.7] 13.| 12.42] 11.4 10.594 2.1 18 17 1 12 24 022 .21 366 .514 74 6.26 120 250 6.47 36 880 49 5.54 $47 $1 6.1 $259 5 5.79 5. 5.77 5929 5.1 5.222 528 5.218 533 4. 4.76 4.12 4.44 4. 1 .849 ,72 12 359 1 | 1711 15.415 | 14.0] 12.1 11.74 | 10 | 117 22 13.17] 16 | 14.451 | 12.1 | 12.042 | 11.1 | 12.21 .442 2.48]1.22] 16.444 | 14.7] 13.4] 12.11.27 | 101 520 21.24 |11411616.247] 13,|20111.4 10.5 23 | 19.62 | 17.41 | 15.22 | 14.04 | 12.7] 11.64 | 12875 $742 24 % 562 $46 7.71 4 43 5 11 5.044 6073 5.4 5.410 5.42 5.41 5.467 4.1 4.09 4.8 4. 4.94 6.44 464 27 2.1121 17] 16. | 14.3 | 13 | 11. | 11 29 22.50.07 | 127] 16| 14.64 | 13.211 | 11.|10|1 24.18] 21.21|1,4| 16 | 14.| 13.4| 12.17 | 11.1 1.116 25 | 21.44 | 19.1| 16.4 | 16.141 13.51 | 12.27] 11.1| 10.1 ]13 117.2116]1|12.4|11.2 10.274 31 9.237 2.427 43 4 022 5 61 $.41 6.514 84 6.881 566 6.11 138 6.18 16 6.177 5.4 5.4 5802 5.51 5817 4.6 4.4 4.3 4.75 4. 7000 40 | 27 38 | 115 | 19 | 17.1] 16.4| 13 | 11.325 | 10.767 , .244 7.1 $642 28 5548 4. 50 11.424 | 21.4 | 1 26 | 16.7 | 131 | 12.2|1082 15 ,304 718 $61 6.248 54 4.3 Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,250 per year at the end of each of the next eight years 2. $48,750 (lump sum) now 3. $99,350 (lump sum) eight years from now (Click the icon to view Present Value of $1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements, Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3 appears to be the best option. Based on an 8% interest rate, its present value is the Requirement 2. Would your preference change if you used a 10% discount rate? Compute the present value of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3 appears to be the best option. Based on a 10% interest rate, its present value is the