QueSLUIT help Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,750 per year at the end of each of the next eight years 2. $50,100 (lump sum) now 3. $98,150 (lump sum) eight years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3: V appears to be the best option. Based on an 8% interest rate, its present value is the Requirement 2. Would your preference change if you used a 10% discount rate? Compute the present value of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Cronarin Enter any number in the edit fields and then continue to the next question. Requirement 2. Would your preference change if you used a 10% discount rate? Compute the present value of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3: appears to be the best option. Based on a 10% interest rate, its present value is the Enter any number in the edit fields and then continue to the next question Present Value of $1 Periods 1% 0.990 0.980 0.971 0.961 0.951 2% 3% 0.9800.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 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% 1 0.943 0.890 0.840 0.792 0.747 7 % 0.935 0.873 0.816 0.763 0.713 8% 9% 0.926 0.917 0.8570.842 0.794 0.772 0.735 0.708 0.681 0.650 0.630 0.596 0.583 0.547 0.540 0.502 0.500 0.460 0.463 0.422 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 | 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.507 0.452 0.404 0.361 | 0.322 0.370 0.314 0.266 0.225 | 0.191 0.335 0.279 0.233 0.194 0.162 0.585 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.388 0.356 0.326 0.299 0.275 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.187 0.163 0.141 0.123 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.853 0.844 0.836 0.828 0.820 0.811 0.728 0.714 0.700 0.686 0.673 0.623 0.605 0.587 0.570 0.554 0.538 0.534 0.513 0.494 0.475 0.456 0.439 0.458 0.436 0.416 0.396 0.377 0.359 0.394 0.371 0.350 0.331 0.312 0.294 0.339 0.292 0.317 0.270 0.296 0.250 0.277 0.232 0.258 0.215 0.2420.199 0.252 0.231 0.212 0.194 0.178 0.163 0.146 0.130 0.116 0.104 0.123 0.108 0.095 0.083 0.073 0.107 0.093 0.081 0.070 0.061 0.093 0.080 0.069 0.060 0.051 0.071 0.060 0.051 0.043 0.037 0.054 0.045 0.038 0.031 0.026 21 0.660 0.1640.135 0.093 0.064 0.053 0.044 0.031 0.022 | 0.905 0.014 0.750 0.403 | 0.422 0.500 0.322 0.270 | 0.247 | U.ZZI | 0.191 | 0.102 0.388 0.896 0.887 0.879 0.870 0.861 0.0200.144 | 0.070 0.804 0.722 0.650 0.788 0.701 0.625 0.773 0.681 0.601 0.758 0.661 0.577 0.743 0.642 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.500 0.475 0.444 0.415 0.388 0.362 0.339 0.317 0.296 0.277 0.258 0.429 0.397 0.368 0.340 0.315 0.356 0.326 0.299 0.275 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.187 0.163 0.141 0.123 0.195 0.168 0.145 0.125 0.108 | 0.162 0.137 0.116 0.099 0.084 0.071 0.060 em 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.853 0.844 0.836 0.828 0.820 0.728 0.714 0.700 0.686 0.673 0.623 0.605 0.587 0.534 0.513 0.494 0.475 0.456 0.458 0.436 0.416 0.396 0.377 0.394 0.371 0.350 0.331 0.312 0.292 0.270 0.250 0.232 0.215 0.252 0.231 0.212 0.194 0.178 0.218 0.198 0.180 0.164 0.149 0.163 0.146 0.130 0.116 0.104 0.123 0.108 0.095 0.083 0.073 0.107 0.093 0.081 0.070 0.061 0.093 0.080 0.069 0.060 0.051 0.051 0.570 0.043 0.037 0.554 0.242 0.226 0.811 0.803 0.795 0.788 0.780 0.660 0.647 0.634 0.622 0.610 0.439 0.422 0.406 0.390 0.375 0.359 0.342 0.326 0.310 0.295 0.294 0.278 0.262 0.247 0.233 0.199 0.184 0.170 0.158 0.146 0.164 0.150 0.138 0.126 0.116 0.135 0.123 0.112 0.102 0.092 0.093 0.083 0.074 0.066 0.059 0.064 0.056 0.049 0.043 0.038 0.053 0.046 0.040 0.035 0.030 0.044 0.038 0.033 0.028 0.024 0.031 0.026 0.022 0.019 0.016 0.022 0.018 0.015 0.013 0.010 | 0.197 0.184 0.538 0.522 0.507 0.492 0.478 0.464 0.450 0.437 0.424 0.412 0.009 0.772 0.764 0.757 0.749 0.742 0.598 0.586 0.574 0.563 0.552 0.361 0.347 0.333 0.321 0.308 0.281 0.268 0.255 0.243 0.231 0.220 0.207 0.196 0.185 0.174 0.097 0.054 0.172 0.161 0.150 0.141 0.131 0.067 0.034 0.135 0.125 0.116 0.107 0.099 0.106 0.098 0.090 0.082 0.075 0.084 0.076 0.069 0.063 0.057 0.053 0.047 0.042 0.037 0.033 0.033 0.029 0.026 0.022 0.020 0.026 0.023 0.020 0.017 0.015 0.021 0.018 0.016 0.014 0.012 0.014 0.011 0.010 | 0.008 0.007 0.007 0.006 0.005 0.004 0 307 0.011 0.001 0.001 0.672 0.608 0.453 0.372 0.208 0.141 0.142 0.087 0.046 0.021 0.032 0.013 0.022 0.009 0.005 0.001 0.004 0.001 0.003 0.001 0.228 0.003 yl Print Done i Reference Present Value of Ordinary Annuity of $1 Periods 18% 0.847 1.566 2.174 2.690 3.127 600 VOWN 4.329 5.076 4.868 4.288 7.325 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.046 18.857 2% 3% 4% 5% 6% 7% 8% 0.980 0.971 0.962 0.952 0.943 0.935 0.926 1.942 1.913 1.886 1.859 1.8331.808 1.783 2.884 2.829 2.775 2.723 2.673 2.624 2.577 3.808 3.717 3.630 3.546 3.465 3.387 3.312 4.713 4.580 4.452 4.212 4.100 3.993 5.601 5.417 5.242 4.917 4.767 4.623 6.472 6.230 6.002 5.786 5.582 5.389 5.206 7.020 6.733 6.463 6.210 5.971 5.747 8.162 7.786 7.435 7.108 6.802 6.515 6.247 8.983 8.530 8.111 7.722 7.360 7.024 6.710 9.787 9.253 8.760 8.306 7.887 7.499 | 7.139 10.575 9.954 9.385 8.863 8.384 7.943 7.536 11.348 10.635 9.986 9.394 8.853 8.358 7.904 12.106 11.296 10.563 9.899 9.295 8.745 8.244 11.938 11.118 10.380 9.712 9.108 8.559 13.578 12.561 11.652 10.838 10.106 9.447 8.851 14.292 13.166 12.166 11.274 10.477 9.763 9.122 14.992 13.754 12.659 11.690 10.828 10.0599.372 15.678 14.324 13.134 12.085 11.158 10.336 9.604 16.351 14.877 13.590 12.462 11.470 10.5949.818 17.011 15.415 14.029 12.821 | 11.764 10.836 10.017 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 9.292 10% 12% 14% 0.909 0.893 0.877 1.736 1.6901.647 2.487 2.402 2.322 3.170 3.037 2.914 3.791 3.605 3.433 4.355 4.111 3.889 4.564 5.335 4.968 4.639 5.759 5.328 4.946 6.145 5.650 5.216 6.495 5.938 5.453 6.814 6.194 5.660 7.103 6.424 5.842 7.367 6.628 6.002 7.606 6.811 7.824 6.974 6.265 8.022 7.120 8.2017.250 6.467 8.365 7.366 6.550 8.514 7.469 8.6497.5626.687 15% 16% 0.870 0.862 1.626 1.605 2.283 2.246 2.855 2.798 3.352 3.274 3.784 3.685 4.160 4.039 4.487 4.344 4.7724.607 5.019 4.833 5.234 5.029 5.421 5.197 5.583 5.342 5.724 5.468 5.847 5.575 5.954 5.669 6.047 5.749 6.128 5.818 6.198 5.877 6.259 5.929 6.312 5.973 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 4.891 6.142 6.373 6.623 Print Done Reference x TU | 3.210 4.494 4.192 12 14 17 19 9.471 0.903 0.530 10.III .IZZ 1.300 7.024 0.7 100 .4 10 0.1455.000 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 11.255 10.575 9.954 9.3858.8638.384 7.943 7.161 6.814 6.194 12.134 11.348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.6497.562 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 22.795 20.121 | 17.877 15.983 14.375 | 13.003 | 11.826 10.810 | 9.929 9.161 7.896 23.560 20.707 | 18.327 | 16.330 | 14.643 13.211 11.987 10.935 10.027 | 9.237 7.943 24.316 21.28118.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 25.066 21.844 19.188 16.984 15.141 13.591 | 12.278 11.158 10.198 | 9.370 8.022 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.7579.779 8.244 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 6.687 6.743 6.792 6.835 6.873 6.906 6.935 6.961 6.983 7.003 7.105 7.133 0.019 4.033 5.234 5.029 5.421 5.197 5.583 5.342 5.724 5.468 5.847 5.575 5.954 5.669 6.047 5.749 6.128 5.818 6.198 5.877 6.259 5.929 6.312 5.973 6.359 6.011 6.399 6.044 6.434 6.073 6.464 6.097 6.491 6.118 6.514 | 6.136 6.534 6.152 6.551 6.166 6.177 6.642 6.233 6.661 6.246 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 5.480 5.492 5.502 5.510 5.517 5.548 5.554 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 4.891 4.909 4.925 4.937 4.948 4.956 4.964 4.970 4.975 4.979 4.997 4.999 6.566 50 Print Done