Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASEEE ANSWER all Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value

PLEASEEE ANSWER all
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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.) Corne Scenario 3. Assume that Zoey 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 15 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw = Scenario 4. Geena plans to invest $2,000 at the end of each year for the riext eight years. Assuming a 12% 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 Amanda have to invest now to be able to withdraw $9,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar) Present value Scenario 6. Aaron is considering a capital investment that costs $525,000 and will provide pot 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 1. Ben just hit the jackpot in Las Vegas and won $50,000! If he invests it now, at a 12% interest rate, how much will it be worth in 15 years? 2. Hunt would like to have $4,000,000 saved by the time he retires in 40 years. How much does he need to invest now at a 14% 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 10%, how much money will she be able to withdraw at the end of each year for fifteen years? 4. Geena plans to invest $2,000 at the end of each year for the next eight years. Assuming a 12% interest rate, what will her investment be worth eight years from now? 5. Assuming a 12% interest rate, how much would Amanda have to invest now to be able to withdraw $9,000 at the end of every year for the next ten years? 6. Aaron is considering a capital investment that costs $525,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1... $302,000 Year 2... $206,000 Year 3. $108,000 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? Print Done Usin our answer to the nearest whole dollar. Use parentheses or a minus oed in Question 67 ). We tried 10% in question 6, now we'll try 12% and calculate the NR ses or a minus sign to represent a negative NPV) Solve var (Click (Clic (Clic Scenario much mo as a posit Amount a Scenario investme Future Scenario every yea Present Scenario hurdle rate of 10%, find the represent a negative NPV Net Present Value (NPV) Scenario 7. What is the IF The IRR is the interest rat (Round your answer to the Net Present Value (NPV) The IRR for the project is between 8% and 10% between 10% and 12% between 12% and 14% between 14% and 16% Present Value of $1 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 2 Perlod 3 Periods 1% 2% 3% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.855 0.823 0.792 0.735 0.683 0.592 0.552 0.516 0.482 0.784 0.747 0.681 0.621 0.519 0.476 0.437 0.402 Period 4 0.961 0.924 0.888 Period 5 0.951 0.906 0.863 0.636 0.567 0.822 Period 6 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.354 0.314 0.279 Period 8 0.400 0.351 0.308 0.263 0.225 0.305 0.266 0.233 0.942 0.888 0.837 0.790 0.746 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0467 0.404 0.837 0.766 0.703 0.645 0.592 0.500 0424 0.361 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Perlod 9 0.914 0.194 Perlod 10 0.905 0.270 0.227 0.191 0.162 Perlod 11 0.896 0.804 0.722 0.650 0.585 0.527 Period 12 0.887 0.788 0.625 0.557 0.497 0.701 0.879 0.773 0.681 Period 13 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0,442 0340 0.417 0,315 0.125 0.099 0.078 0.108 0.084 0.065 Period 15 0.861 0.743 0.642 0.555 0.481 Period 20 0.820 0.673 0.554 0.263 0.205 0.160 0.239 0.183 0.140 0.149 0.104 0.073 0.051 0.037 0.026 0.092 0.059 0,038 0.024 0.016 0.010 0.057 0.033 0.020 0.012 0.007 0.004 0.022 0011 0.005 0.003 0.001 0.001 Period 25 0.780 0.610 0.456 0.377 0312 0215 0.375 0.295 0.233 0.146 0.231 0.174 0.099 0.142 0.097 0.046 0.478 Period 30 0.742 0.552 0.412 0.308 Period 40 0.672 0.453 0.307 0.208 Future Value of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 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 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 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 1.094 1.195 1.305 1,423 1.551 1.689 1.999 2.358 2.773 3.803 4.435 5.160 3.252 3.707 1.105 1.219 1.629 1.344 1.450 1.791 6.192 2.159 2.594 3.106 4.411,5,234 1.116 1.243 1,384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 7.430 5.117 6.176 1.127 1.268 8.916 1.426 1.601 1.796 3.896 4.818 2012 2.518 3.138 5.936 7.288 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 8.599 10.699 6.886 5.492 1.149 1,319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 7.988 10.147 12.839 6.261 7.138 9.266 11.974 15.407 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 1.220 1.486 38.338 2.653 3.386 13.743 19.461 27.393 6.727 9.646 10.835 17.000 26.462 40.874 62.669 95.396 3,207 4.661 6.848 10.063 17.449 29.960 50.950 85.850 143.371 237.376- 4.292 1.282 1.345 4.322 5.743 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 1.489 2.208 7.040 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 2.191 1.806 1.641 2.094 2.666 1.811 2.427 3.243 3.262 4.801 Ver r for er to arest answe s or a m he fut 2% int much If she in Assuming be able t net cash 6, now we'll Reference Present Value of Annulty of $1 Periods 1% 2% 3% 4% 5% 20% Period 1 0.833 Period 2 1.528 Period 3 2.106 1.970 2.941 3.902 4.853 Period 4 2.589 Perlod 5 2.991 Period 6 3.889 3.685 3.498 3.326 4.039 3.812 3.605 Period 7 Period 8 3.837 Period 9 4.031 6% 8% 10% 12% 14% 16% 18% 0.990 0.960 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 2.884 2.829 2.775 2.723 2673 2.577 2.487 2.402 2.322 2246 2.174 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3274 3.127 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 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 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5342 4.910 4.533 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6,625 6.002 5468 5.008 4.611 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 Period 20 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 Period 25 22.023 19.523 17413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.00 6.177 5.512 4.979 Period 40 32.835 27 355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 Period 10 Period 11 Period 12 Perlod 13 Perlod 14 Period 15 4.997 - X r.) answer to th dollar Use par nt a negative NP ob Reference Future Value of Annulty of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 15% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2010 2.020 2.030 2.040 2.050 2.060 2.080 2,100 2120 2.140 2:160 2.180 2.200 3.000 3.060 3.091 3.440 3.506 3.572 3.640 4.060 4.122 5.215 5,368 5.101 5.204 7.154 7442 6.152 6.308 3.122 3.153 3.184 3.246 3.310 3.374 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.309 5416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 6.458 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 7,662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 5.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 9.755 10.159 10.583 11.027 11.491 12:488 13.579 14.776 16.085 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 9.442 9.930 7.214 12.142 12.916 7.434 8.256 8.583 14.240 15.327 16.499 17.519 19.056 20.799 9.369 10.462 19.337 21.321 23.521 25.959 2 25.733 25.755 32.150 30.850 34.931 39.501 36.756 42219 45.497 43.672 50.818 59, 196 51,660 60.965 72.000 11.567 12.169 12.808 13.486 14,207 14.972 16.645 18.531 20,655 23.045 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24 133 27.271 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.009 14.947 15.974 17.066 15.292 19.599 21.015 24.215 27.975 32.393 37.501 15.599 20.024 21.579 23.276 27 152 31.772 37.200 43.842 22.019 24 297 26.570 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.300 146.620 106 650 25.243 32.030 36.459 41.646 47,727 54.865 73 106 98.347 133.334 181.871 249.214 342.603 471.901 34.785 40.566 47.575 56.085 66.439 79.058 113.253 164.494 241,333 356.787 530,312 790.948 1,181,802 48.856 60 402 75.401 95 026 120 800 154 762 259.057 442 593 767 091 1.342 025 2,360.757 4.163.213 7.343.858 16.097 17.293 Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period S Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 X o the nearest whole Use parentheses or a t ative NPV)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting With QuickBooks Online

Authors: Donna Kay

2nd Edition

1260888061, 9781260888065

More Books

Students also viewed these Accounting questions