P12-55A (similar to) :3 Question Help Solve various time value of money scenarios. i (Click the icon to view the scenarios.) (Click the icon to view the present value of $1 table.) 5 (Click the icon to view the present value of annuity of $1 table.) (Click the icon to view the future value of $1 table.) 5 (Click the icon to view the future value of annuity of $1 table.) Scenario 1. Daniel just hit the jackpot in Las Vegas and won $45,000! If he invests it now at a 10% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar.) Future value = $ A Reference i Reference Present Value of $1 Present Value of Annuity of $1 Periods Periods 1% 0.990 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 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 16% 0.862 0.743 0.641 0.552 0.476 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 5% 0.952 1.859 2.723 3.546 4.329 6% 8% 0.943 0.926 1.833 1.783 2.673 2.577 3.465 | 3.312 4.212 3.993 10% 0.909 1.736 2.487 3.170 3.791 12% 14% 0.893 0.877 1.6901.647 2.402 2.322 3.037 2.914 3.605 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 2.941 3.902 4.853 20% 0.833 1.528 2.106 2.589 2.991 5.601 0.705 0.665 5.242 6.002 6.472 0.942 0.933 0.923 0.914 0.905 0.888 0.837 0.871 0.813 0.853 0.789 0.837 0.766 | 0.820 | 0.744 0.790 0.746 0.760 | 0.711 0.731 0.677 0.703 0.645 0.676 | 0.614 0.630 0.583 0.540 0.500 0.463 0.627 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 | 0.162 5.795 6.728 7.652 8.566 9.471 5.417 6.230 7.020 7.786 8.530 6.733 7.325 8.162 8.983 5.076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.360 4.623 5.206 5.747 6.247 6.710 4.355 4.868 5.335 5.759 6.145 4.111 4.564 4.968 5.328 5.650 3.889 3.685 4.288 4.039 4.639 4.344 4.9464.607 5.216 | 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 0.592 0.558 7.435 8.111 0.896 0.135 0.112 0.879 0.870 0.861 0.804 0.722 | 0.701 0.773 0.681 0.758 0.661 0.743 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 | 0.429 0.497 | 0.397 0.469 0.368 0.442 0.340 0.417 0.315 0.350 0.319 | 0.290 0.263 | 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.195 0.162 | 0.208 0.168 0.182 0.145 0.1600 1250 099 0.140 | 0.108 10.368 11.255 12.134 13.004 13.865 9.787 9.2538.760 8.306 10.575 9.954 9.3858.863 11.348 10.635 9.986 9.394 12.106 11.296 10.563 9.899 12.849 11.938 11.118 10.380 7.887 8.384 8.853 9.295 9.712 7.139 7.536 7.904 8.244 8.559 6.495 5.938 6.814 6.194 7.103 6.424 7.367 6.628 7.606 6.811 5.453 5.029 5.6605.197 5.842 5.342 6.002 5.468 6.142 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 0.078 0.820 0.780 0.742 0.672 0.673 0.610 0.552 0.453 0.554 0.478 0.412 0.307 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 0.037 0.026 0.0160.010 0.007 0.004 0.001 0.001 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.623 22.023 19.523 17.413 15.622 14.094 12.783 10.675 | 9.077 | 7.843 6.873 25.808 22.396 19.600 17.292 15.372 | 13.765 11.258 | 9.427 | 8.055 7.003 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Print Done Print | Done Xlla cleuil--UPLIuliai 1 of 2 (0 complete) A Reference - X (Click the loon to view the present value of annulty of $1 table.) (Click the loon to view the future value of annuity of S1 table.) 1620 1061 1082 100 1210 1440 1040 1061 1 062 1.124 1.191 1346 1551 1.030 1093 1250 1728 on $45,0001 If he invests it now at a 10% interest rate how much will it be worth in 20 years? (Round your answel 1125 1 159 1216 2074 2.88 1051 1104 1217 1.276 1338 1469 1611 1762 1011 2.100 1.520 2288 1419 1.587 2986 1.052 1072 1.126 1 149 1.265 1 316 1.772 1949 1 230 1714 2. 195 2502 2.853 i More Info - X 1083 1.172 1477 2144 3.278 1257 1305 1195 2158 4.300 5.160 1999 3252 1024 1.100 1551 1.625 1504 1.594 1.689 1.791 1.898 1219 1344 2592 3.707 4.411 4435 5.24 6.176 6.152 1116 1539 2053 4.225 5.117 1384 1425 3. 479 3896 1 122 1 268 2510 4 818 5936 7 208 3138 3452 1 294 2012 2.133 2.261 1.665 4363 6886 5.492 6.261 7430 8915 10 699 12039 15.407 1.149 1346 1513 1.558 10.147 11.974 2.397 3 172 5474 3.207 1.486 1 641 1.811 1.805 2094 2427 1 22 1. Danicl just hit the jackpot in Las Vegas and won $45.000! If he invests it now at a 10% interest rate, how much will it be worth in 20 years? 2. Hunt would like to have $3.000.000 saved by the time he retires in 40 years. How much does he need to invest nawala 14% interest rate to fund his retirement poal? 3. Assume that Vivian accumulates savings of $1 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 x 15 yeas? 4. Katelyn plans to invest S4 500 at the end of each year for the next seven years. Assuming 10% 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 $14.000 at the end of every year for the next nine years? Booker is considering a capital investment that costs $530,000 and will provide the following nel cash inflows 2.191 2 666 3.243 4.661 6 843 13.743 26492 27.393 62 669 3386 6727 10835 17.449 45 252 38 338 95 396 237 375 1466 777 19.461 40 874 85.860 378 721 1348 5.743 10.2016 10.063 21.725 20 960 180.884 750378 Reference Year Net Cash Inflow Future Value of Annuity of $1 1........ 2. $296,000 $200.000 S105,000 1000 1000 2000 2060 2.100 2.180 2.200 3.610 3.060 3.061 3 122 3.153 3310 3.374 3400 3.030 4.080 5 101 3184 4 375 3246 4506 5867 4921 3.505 5066 3.572 5.215 4310 5526 Lusing a hurdle rate of 8% find the NPV of the investment 7. What is the IRR of the capital investment described in Question 6? 5204 5309 5416 6 105 6 610 6 877 7154 7442 6.152 6.468 6.975 8.535 6.802 2.142 8977 9.930 12916 7214 10730 10.000 12300 8.255 9,897 Print 8852 Donc 7.336 8923 10.637 12488 14 487 9.369 9.755 10950 9.214 10.583 12.006 10.159 11464 12.142 15 327 19.086 23.521 13.233 16.085 19 337 11 027 15499 20 799 25959 10 462 14.240 17519 21321 25.738 12.57 17519 11.567 12.169 12808 14192 15618 13486 15006 13412 28.755 34931 13.181 14.972 16670 18 882 21.015 23.276 30 950 14.207 15.917 17.713 19 599 21.579 32.150 29 501 7.716 9487 11.435 13.579 15937 18.531 21 304 24 323 27 975 31.772 57 275 98147 164 494 442 593 24.132 28.029 13.306 23.045 27 271 32089 37581 43.842 42215 43 672 15 974 17 293 17 086 18.599 16645 12977 21 495 24 215 27.152 45.762 73106 113.283 259.057 30 818 60 965 20.024 51890 59 196 72.035 16.097 22.019 28 243 34785 148 BD 25 870 36459 30.066 24297 22000 40.568 60 402 29.778 47727 55.08566.439 95096 120 000 41 646 54095 79.058 154.762 91.025 115 380 133 334 181 071 249 214 241 333 36.787 300312 767 091 192025 2360 757 145.628 185.688 342 603 471901 790,948 1,181.882 4 163 213 7343 858 75401 Print Done