More info 1. Eddie just hit the jackpot in Las Vegas and won $40,000! If he invests it now, at a 10% interest rate, how much will it be worth in 15 years? 2. Inman 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 10% interest rate to fund his retirement goal? 3. Assume that Zoey 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 twenty years? 4. Katelyn plans to invest $6,500 at the end of each year for the next seven years. Assuming a 12% interest rate, what will her investment be worth seven years from now? 5. Assuming a 10% interest rate, how much would Vanna have to invest now to be able to withdraw $10,000 at the end of every year for the next nine years? 6. Booker is considering a capital investment that costs $515,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1 ... $300,000 Year 2 ... $198,000 Year 3 ... $106,000 Using a hurdle rate of 10%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Reference Present Value of $1 Periods 1% 2% 3% 5% 6% 8% 10% 12% 14% 16% 18% 20% Perlod 10.990 0.980| 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Perlod 20.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Perlod 30.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Perlod 40.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Perlod 50.951 0.906 0.883 0.822 0.784 0.747 0.681 0.621 0.587 0.519 0.476 0.437 0.402 Perlod 60.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Perlod 70.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Perlod 80.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Perlod 90.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 10 Period 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 11 Period 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 12 Period 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 13 Period 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 14 Period 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 15 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 20 Perlod 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 25 Perlod 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 30 Period 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 40 Reference Periode 1% 2% 3% 12% 14% 20% 1.200 Future Value of $1 5% 6% 8% 10% 16% 18% 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 Perlod 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 Perlod 31.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 Perlod 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 Perlod 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 Perlod 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 Perlod 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 Perlod 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Perlod 91.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 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 10 1.440 1.728 2.074 2.488 Period 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 11 Period 12 Period 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 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 7.988 10.147 12.839 13 Period 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 14 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 Period 15 Perlod 20 Period 25 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884378.721750.3781,469.772 Period 30 Period 40 Reference Present Value of Annulty of $1 Periode 1% 2% 3% 4% 5% 6% Perlod 10.990 0.980 0.971 0.962 0.952 0.943 Perlod 2 1.970 1.942 1.913 1.886 1.859 1.833 Perlod 3 2.941 2.884 2.829 2.775 2.723 2.673 Perlod 4 3.902 3.808 3.717 3.630 3.546 3.465 Perlod 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 8% 10% 12% 14% 16% 18% 20% 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.312 3.170 3.037 2.914 2.798 2.690 2.589 3.433 3.274 3.127 2.991 3.889 3.685 3.498 3.326 Perlod 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 Perlod 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 Perlod 87.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Perlod 98.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Perlod 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10 Perlod 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 Perlod 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11 12 Perlod 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13 Perlod 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 14 Perlod 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 15 Perlod 20 Perlod 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 22.023 19.523 17.41315.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 25 Perlod 30 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Perlod 40 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 future 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 annuity of $1 table.) Scenario 1. Eddie just hit the jackpot in Las Vegas and won $40,000! If he invests it now, at a 10% interest rate, how much will it be worth in 15 years? (Round your answer to the nearest whole dollar.) Future value Scenario 2. Inman 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 10% 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 $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 as a positive amount.) Amount able to withdraw Scenario 4. Katelyn plans to invest $6,500 at the end of each year for the next seven years. Assuming a 12% 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 10% interest rate, how much would Vanna 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. Booker is considering a capital investment that costs $515,000 and will provide net cash inflows for three years. Using a hurdle rate of 10%, 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 10% in question 6, now we'll try 12% 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 project is Reference Future Value of Annulty of $1 Periode 1% 2% 3% 5% 16% 18% 20% 8% 1.000 1.000 10% 12% 14% 1.000 1.000 1.000 1.000 1.000 1.000 Perlod 1.000 1.000 1.000 1.000 1.000 1 Perlod 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.572 3.640 Perlod 3.030 3.060 3.091 3.122 3.153 3 3.184 3.246 3.310 3.374 3.440 3.506 4.375 4.506 4.641 4.779 4.921 5.066 5.215 Perlod 4.060 4.122 4.184 4.246 4.310 14 5.368 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Perlod 5.101 5.204 5.309 5.416 5.526 5 Perlod 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 6 Perlod 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 8.286 8.583 8.892 9.214 9.549 Peri 8 9.897 10.637 11.436 12.300 13.233 14.240 5.32 16.085 17.519 19.086 Perlod 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 20.799 9 Perlod 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 10 32.150 Perlod 11.567 12.169 12.80813.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 11 30.850 34.931 39.581 Period 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 12 Perlod 13.809 14.680 15.61816.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 13 43.672 50.818 59.196 Perlod 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 14 51.660 60.965 72.035 Period 16.097 17.293 18.59920.024 21.579 23.276 27.152 31.772 37.280 43.842 15 22.01924.29726.87029.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Perlod 20 Perlod 28.24332.03036.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 25 Perlod 34.78540.56847.57556.085 66.439 79.058 113.283 164.494241.333 356.787 530.312 790.948 1,181.882 30 Perlod 48.88880.40275.40195.026120.800 154.762259.057442.593767.0911.342.0252.360.7574,163.2137.343.858 40 2 60 X