More info 1. Ben just hit the jackpot in Las Vegas and won $70,000! If he invests it now, at a 14% interest rate, how much will it be worth in 15 years? 2. Forest would like to have $4,000,000 saved by the time he retires in 30 years. How much does he need to invest now at a 10% interest rate to fund his retirement goal? 3. Assume that Stephanie 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 fifteen years? 4. Donna plans to invest $4,000 at the end of each year for the next eight years. Assuming a 10% interest rate, what will her investment be worth eight years from now? 5. Assuming a 12% interest rate, how much would Marisa have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? 6. Michael is considering a capital investment that costs $530,000 and will provide the following net cash inflows: Year Year 1 ... Year 2... Year 3 ... Net Cash Inflow $308,000 $196,000 $102,000 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? Print Done