PLEASE COMPLETE SCENARIOS 1-7!

Solve various time value of money scenarios. 1. Irving just hit the jackpot in Las Vegas and won $35,000! If he invests it now, at a 10% interest rate, how much will it be worth in 15 years? 2. Trent 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 14% interest rate to fund his retirement goal? 3. Assume that Ramona 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. Jessica 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 6% interest rate, how much would Katie have to invest now to be able to withdraw $13,000 at the end of every year for the next nine years? 6. Victor is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Net Cash Inflow $304,000 Year 1 ... Year 2 ... $206,000 Year 3 $ 108,000 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? Scenario 1. Irving just hit the jackpot in Las Vegas and won $35,000! 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. Trent 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 14% interest rate to fund his retirement goal? (Round your answer to the nearest whole dollar.) Present value Scenario 3. Assume that Ramona 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. Jessica 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? (Round your answer to the nearest whole dollar.) Future value Scenario 5. Assuming a 6% interest rate, how much would Katie have to invest now to be able to withdraw $13,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value Scenario 6. Victor is considering a capital investment that costs $510,000 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 Future Value of $1 6% 10% 14% 18% 20% 3% 1.030 1.061 1.060 1.100 1% 1.010 1.020 1.030 1.041 1.140 1.124 2% 1.020 1.040 1.061 1.082 1.104 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 8% 1.080 1.166 1.260 1.360 1.469 12% 1.120 1.254 1.405 1.574 1.762 1.210 1.331 1.464 16% 1.160 1.346 1.561 1.811 1.093 1.126 1.159 1.200 1.440 1.728 1.191 1.262 1.338 1.300 1.482 1.689 1.925 1.180 1.392 1.643 1.939 2.288 2.074 1.051 1.611 2.100 2.488 1.126 1.062 1.072 1.149 1.083 1.094 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.105 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 Present Value of $1 3% 4% 5% 0.971 0.962 0.952 0.943 0.925 0.907 0.915 0.889 0.864 0.888 0.855 0.823 0.863 0.822 0.784 6% 8% 0.943 0.926 0.890 0.857 0.840 0.794 0.792 0.735 0.747 0.681 10% 12% 14% 0.909 0.893 0.877 0.826 0.797 0.769 0.751 0.712 0.675 0.683 0.636 0.592 0.621 0.567 0.519 16% 18% 20% 0.862 0.847 0.833 0.743 0.718 0.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 0.564 Periods 1% 2% Period 1 0.990 0.980 Period 2 0.980 0.961 Period 3 0.971 0.942 Period 4 0.961 0.924 Period 5 0.951 0.906 Period 6 0.942 0.888 Period 7 0.933 0.871 Period 8 0.923 0.853 Period 9 0.914 0.837 Period 10 0.905 0.820 Period 110.896 0.804 Period 12 0.887 0.788 Period 130.879 0.773 Period 14 0.870 0.758 Period 15 0.861 0.743 Period 20 0.820 0.673 Period 25 0.780 0.610 Period 30 0.742 0.552 Period 40 0.672 0.453 0.837 0.790 0.746 0.705 0.630 0.813 0.760 0.711 0.665 0.583 0.789 0.731 0.677 0.627 0.540 0.766 0.703 0.645 0.592 0.500 0.744 0.676 0.614 0.558 0.463 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 0.227 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 18% 0.847 16% 0.862 1.605 2.246 20% 0.833 1.528 2.106 1.566 2.174 2.690 2.798 2.589 3.274 3.127 2.991 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 Period 9 8.566 8.1627.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 Period 14 | 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 Period 15 | 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.606 6.811 6.142 Period 2018.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.4696.623 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7,003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 14% 1.000 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 2.140 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 12% 1.000 2.120 3.374 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 4.779 4.122 5.204 3.440 4.921 6.610 6.353 7.442 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 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 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 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 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 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 16.097 | 17.29318.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.2137.343.858 Period 20 Period 25 Period 30 Period 40