More info 1. Ben 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 20 years? 2. Alan would like to have $4,000,000 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 Zoey accumulates savings of $2 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 twenty years? 4. Cathy plans to invest $4,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? 5. Assuming a 12% interest rate, how much would Danielle have to invest now to be able to withdraw $8,000 at the end of every year for the next nine years? 6. Sammy is considering a capital investment that costs $490,000 and will provide the following net cash inflows: Year Year 1 Year 2 Year 3 ... Net Cash Inflow $304,000 $198,000 $102,000 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? Print Done ve K Solve various time value of money scenarios. Click the joon to view the scenarios) (Click the icon to view the present value of $1 table) (Click the icon to view the future value of $1 table) Question 1 of 2 This quiz: 2 points possible Submit quiz This question: 1 point possible (Click the icon to view the present value of annuity of $1 table) (Click the icon to view the future value of annuity of $1 table) Scenario 1. Ben 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 20 years? (Round your answer is the nearest whore dollar) Future value Scenario 2. Alan would like to have $4,000,000 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 Zoey accumulates savings of $2 milion by the time she retires if she invests this savings at 12%, how much money will she be able to withdraw a 20 years? (Round your answer to the nearest whole dollar and enter as a positive amount) Amount able to withdraw end of each year for Scenario 4. Cathy plans to invest $4,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what wil her investment be worth seven years from now? (Round your answer to the nearest whole dollar) Future value Scenario 5. Assuming a 12% interest rate, how much would Danielle have to invest now to be able to withdraw $8.000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar) Present value Scenario 6. Sammy is considering a capital investment that costs $490,000 and will provide net cash inflows for three years. Using a hurdle rate of 12%, find the NV of the investment (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV) Scenario 3. Assume that Zoey accumulates savings of $2 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 as a positive amount.) Amount able to withdraw Scenario 4. Cathy plans to invest $4,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what wil her investment be worth seven years from now? (Hound your answer to the nearest whole dollar.) Future value Scenario 5. Assuming a 12% interest rate, how much would Danielle have to invest now to be able to withdraw $8,000 at the end of every year for the next years? Round your to the nearest whole dollar.) Present value Scenario 6. Sammy is considering a capital investment that costs $490,000 and will provide net cash inflows for three years. Using a hurdle rate of 12% nd the NPV of the stand 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 whole he parentheses or a minus sign to represent a negative NPV) Net Present Value (NPV) The IRR for the project is Time Remaining: 00:18:45 Next