More info 1. Harold just hit the jackpot in Las Vegas and won $40,000 ! If he invests it now, at a 14% interest rate, how much will it be worth in 20 years? 2. Bob would like to have $3,500,000 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 Vivian 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 twenty years? 4. Hannah plans to invest $2,000 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 Penelope have to invest now to be able to withdraw $14,000 at the end of every year for the next nine years? 6. Chuckie is considering a capital investment that costs $495,000 and will provide the following net cash inflows: 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? Reference Reference Reference Reference Scenario 1. Harold just hit the jackpot in Las Vegas and won $40,000 ! lf he invests it now, at a 14% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar.) Future value = Scenario 2. Bob would like to have $3,500,000 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? (Round your answer to the nearest whole dollar.) = Scenario 3. Assume that Vivian 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 20 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw = Scenario 4. Hannah plans to invest $2,000 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? (Round your answer to the nearest whole dollar.) Future value = Scenario 5. Assuming a 12\% interest rate, how much would Penelope have to invest now to be able to withdraw $14,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value = Scenario 6. Chuckie is considering a capital investment that costs $495,000 and will provide net cash inflows for three years. Using a hurdle rate of 12%, 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 12% in question 6 , now we'll try 14% 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