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Plz solve 5,6, and 7 Solve the Scenarios. More Info 1. Ben just hit the jackpot in Las Vegas and won $35,000! If he invests
Plz solve 5,6, and 7
Solve the Scenarios.
More Info 1. Ben just hit the jackpot in Las Vegas and won $35,000! If he invests it now at a 14% interest rate, how much will it be worth in 15 years? 2. Evan 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 12% interest rate to fund his retirement goal? 3. Assume that Penny accumulates savings of $2 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? 4. Katelyn plans to invest $6,000 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 Jennifer have to invest now to be able to withdraw $10,000 at the end of every year for the next ten years? 6. Victor is considering a capital investment that costs $485,000 and will provide the following net cash inflows: Year Net Cash Inflow $300,000 2 ........ $200,000 3....... $98,000 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? Print DoneStep by Step Solution
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