Reference Requirements 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? Round to the nearest dollar. 2. Would your preference change if you used a 10% discount rate? Your grandlather would tike to share some of his fortune with you. He ollers to give you maney under one of the following scenarios (you get to choose). (CLick the icon to view the scenarios) (Cick the icon to view Present Value of 51 table.) (Click the icon to viow Future Value of $1 tablo) (Click the kon to view Present Value of Ordinary Anuily of $1 table) (Click the icon to view Future Value Ordinary of Annuly of $1 tatile) Read the ternirements Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yleids the highest present value? Round to the nearest dollar: Begin by calculating the present value of each scenario using an EY discount rate. (Round the amounts to the nearest dollar ) Present value of Scenario 1= \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline 15 & & & & & & & & & & & & & & & & & \\ \hline Period16 & 0.853 & 0.728 & 0.623 & 0.534 & 0.458 & 0.394 & 0.339 & 0.292 & 0.252 & 0.218 & 0.163 & 0.123 & 0.107 & 0.093 & 0.071 & 0.054 & \\ \hline Period17 & 0.844 & 0.714 & 0.605 & 0.513 & 0.436 & 0.371 & 0.317 & 0270 & 0231 & 0.198 & 0.146 & 0.108 & 0.093 & 0.080 & 0.060 & 0.045 & \\ \hline Period18 & 0.836 & 0.700 & 0.587 & 0.494 & 0.416 & 0350 & 0.296 & 0.250 & 0.212 & 0.180 & 0.130 & 0.095 & 0.081 & 0.069 & 0.051 & 0,038 & \\ \hline Period19 & 0.828 & 0686 & 0.570 & 0.475 & 0.396 & 0.331 & 0.277 & 0.232 & 0.194 & 0.164 & 0.116 & 0.083 & 0.070 & 0.060 & 0.043 & 0.031 & \\ \hline Period20 & 0.820 & 0.673 & 0554 & 0.456 & 0.377 & 0.312 & 0.258 & 0215 & 0.178 & 0.149 & 0.104 & 0.073 & 0.061 & 0.051 & 0.037 & 0.026 & \\ \hline Period21 & 0.811 & 0.660 & 0.538 & 0.439 & 0.359 & 0.294 & 0.242 & 0.199 & 0.164 & 0.135 & 0.093 & 0.064 & 0.053 & 0.044 & 0.031 & 0.022 & \\ \hline Period22 & 0.803 & 0.647 & 0.522 & 0.422 & 0.342 & 0.278 & 0.226 & 0.184 & 0.150 & 0.123 & 0.083 & 0.056 & 0.046 & 0.038 & 0026 & 0.018 & \\ \hline Period23 & 0.795 & 0.634 & 0.507 & 0.406 & 0.326 & 0.262 & 0211 & 0.170 & 0.138 & 0.112 & 0.074 & 0.049 & 0.040 & 0.033 & 0.022 & 0.015 & \\ \hline Period24 & 0.788 & 0.622 & 0.492 & 0.390 & 0.310 & 0.247 & 0.197 & 0158 & 0126 & 0.102 & 0.066 & 0.043 & 0.035 & 0.028 & 0019 & 0.013 & \\ \hline Period25 & 0.780 & 0.610 & 0.478 & 0.375 & 0.295 & 0.233 & 0.184 & 0,146 & 0.116 & 0.092 & 0.059 & 0.038 & 0.030 & 0.024 & 0.016 & 0.010 & \\ \hline Period26 & 0.772 & 0.598 & 0.464 & 0.361 & 0281 & 0.220 & 0.172 & 0.135 & 0.106 & 0.084 & 0.053 & 0.033 & 0.026 & 0.021 & 0.014 & 0.009 & \\ \hline Period27 & 0.764 & 0.586 & 0.450 & 0.347 & 0.268 & 0207 & 0.161 & 0.125 & 0.098 & 0.076 & 0.047 & 0.029 & 0.023 & 0018 & 0.011 & 0.007 & \\ \hline Period28 & 0.757 & 0.574 & 0.437 & 0.333 & 0.255 & 0.196 & 0.150 & 0.116 & 0.090 & 0.069 & 0.042 & 0.026 & 0020 & 0.016 & 0.010 & 0.006 & \\ \hline Period29 & 0749 & 0.563 & 0.424 & 0.321 & 0.243 & 9285 & 0.141 & 0.107 & 0.082 & 0.063 & 0.037 & 0.022 & 0.017 & 0.014 & 0.008 & 0.005 & \\ \hline Period30 & 0.742 & 0.552 & 0.412 & 0308 & 0.231 & 0.174 & 0.131 & 0.099 & 0.075 & 0.057 & 0.033 & 0.020 & 0.015 & 0.012 & 0.007 & 0.004 & \\ \hline Period40 & 0672 & 0.453 & 0.307 & 0.208 & 0.142 & 0.097 & 0.067 & 0.046 & 0.032 & 0.022 & 0.011 & 0005 & 0.004 & 0.003 & 0.001 & 0.001 & \\ \hline Period50 & 0 608 & 0.372 & 0.228 & 0.141 & 0.087 & 0.054 & 0.034 & 0.021 & 0.013 & 0.009 & 0.003 & 0.001 & 0.001 & 0.001 & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Future Value of \$1 } \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 15% \\ \hline Period 1 & 1010 & 1.020 & 1.030 & 1.040 & 1.050 & 1.060 & 1.070 & 1.080 & 1.090 & 1.100 & 1.120 & 1.140 & 1.150 \\ \hline Period 2 & 1.020 & 1.040 & 1.061 & 1.082 & 1.103 & 1.124 & 1.145 & 1.166 & 1.188 & 1.210 & 1254 & 1.300 & 1.323 \\ \hline Period 3 & 1.030 & 1.061 & 1.093 & 1.125 & 1.158 & 1.191 & 1.225 & 1.260 & 1.295 & 1.331 & 1.405 & 1.482 & 2.521 \\ \hline Period 4 & 1.041 & 1.082 & 1.126 & 1.170 & 1.216 & 1.262 & 1.311 & 1.360 & 1.412 & 1.464 & 1.574 & 1.689 & 9.7499 \\ \hline Period 5 & 1.051 & 1.104 & 1.159 & 1.217 & 1.276 & 1.338 & 1.403 & 1.469 & 1539 & 1.611 & 1762 & 1.925 & 2011 \\ \hline Period 6 & 1.062 & 1.126 & 1.194 & 1.265 & 1.340 & 1.419 & 1.501 & 1.587 & 1.677 & 1.772 & 1.974 & 2195 & 2.313 \\ \hline Period 7 & 1.072 & 1.149 & 1.230 & 1.316 & 1.407 & 1.504 & 1.606 & 1.714 & 1.828 & 1.949 & 2211 & 2502 & 2660 \\ \hline Period 8 & 1.083 & 1.172 & 1.267 & 1.369 & 1.477 & 1.594 & 1.718 & 1.851 & 1.993 & 2.144 & 2.476 & 2853 & 3.059 \\ \hline Period 9 & 1.094 & 1.195 & 1.305 & 1.423 & 1.551 & 1.689 & 1.838 & 1.999 & 2.172 & 2.358 & 2.773 & 32.252 & 3518 \\ \hline Period 10 & 1.105 & 1.219 & 1.344 & 1.480 & 1.629 & 1.791 & 1.967 & 2.159 & 2.367 & 2594 & 3.106 & 3707 & 74.046 \\ \hline d 11 & 1.116 & 1.243 & 1.384 & 1.539 & 1.710 & 1.898 & 2.105 & 2332 & 2.580 & 2.853 & 3.479 & 4226 & 4.652 \\ \hline d 12 & 1.127 & 1.268 & 1.426 & 1.601 & 1.796 & 2012 & 2.252 & 2518 & 2813 & 3138 & 3896 & 4.818 & 5350 \\ \hline Period 13 & 1.138 & 1.294 & 1.469 & 1.665 & 1886 & 2.133 & 2.410 & 2.720 & 3.066 & 3.452 & 4363 & 5.492 & 6.153 \\ \hline Period 14 & 1.149 & 1.319 & 1.513 & 1.732 & 1.980 & 2261 & 2579 & 2937 & 3342 & 3798 & 4.887 & 6.261 & 7076 \\ \hline & 1.161 & 1.346 & 1.558 & 1.801 & 2.079 & 2397 & 2759 & 3.172 & 3.642 & 4.177 & 5.474 & 7.138 & 8.137 \\ \hline Period 16 & 1.173 & 1.373 & 1.605 & 1.873 & 2.183 & 2.540 & 2952 & 3426 & 3.970 & 4.595 & 6.130 & 137 & 9.358 \\ \hline Period 17 & 1.184 & 1.400 & 1.653 & 1.948 & 2292 & 2 & 3.159 & 3.700 & 4.328 & 5.054 & 6.866 & 276 & 10.76 \\ \hline Period 18 & 1.196 & 1.428 & 1.702 & 2.026 & 2.407 & 2854 & 3.380 & 3.996 & 4717 & 5560 & 7.690 & 10.58 & 1238 \\ \hline d 19 & 1208 & 1.457 & 1.754 & 2.107 & 2527 & 3.026 & 3.617 & 4316 & 5.142 & 6.116 & 8613 & 12.06 & 1423 \\ \hline Period 20 & 1.220 & 1.486 & 1.806 & 2.191 & 2653 & 3207 & 3870 & 4661 & 5.604 & 6.727 & 9.646 & 13.74 & 16.37 \\ \hline Period 21 & 1.232 & 1.516 & 1860 & 2279 & 2786 & 3400 & 4.141 & 5.034 & 6.109 & 7.400 & 10.80 & 1567 & 18.82 \\ \hline Period 22 & 1.245 & 1.546 & 1916 & 2.370 & 25 & 3604 & 4.430 & 5.437 & 6.659 & 8.140 & 12.10 & 17.86 & 21.64 \\ \hline Period 23 & 1.257 & 1.577 & 1974 & 2.465 & 3072 & 3820 & 4741 & 5.871 & 7.258 & 8954 & 1355 & 2036 & 2489 \\ \hline Period 24 & 1.270 & 1.608 & 2.033 & 2.563 & 3.225 & 4.049 & 5.072 & 6.341 & 7.911 & 9.850 & 15.18 & 2321 & 28.63 \\ \hline Period 25 & 1.282 & 1.641 & 2.094 & 2666 & 3.386 & 4.292 & 5.427 & 6.848 & 8623 & 10.83 & 1700 & 26.46 & 32.92 \\ \hline Period 26 & 1295 & 1.673 & 2.157 & 2.772 & 3.556 & 4549 & 5.807 & 7.396 & 9.399 & 11.92 & 19.04 & 30.17 & 37.86 \\ \hline Period 27 & 1.308 & 1.707 & 2.221 & 2.883 & 3.733 & 4822 & 6214 & 7.988 & 10.25 & 13.11 & 21.32 & 34.39 & 43.54 \\ \hline Period 28 & 1.321 & 1.741 & 2.288 & 2.999 & 3.920 & 5112 & 6.649 & 8.627 & 11.17 & 14.42 & 23.88 & 3920 & 50.07 \\ \hline Period 29 & 1335 & 1.776 & 2357 & 3119 & 4116 & 5.418 & 7.114 & 9317 & 12.1713.7 & 15.86 & 26.75 & 4469 & 57.58 \\ \hline Peric & 1348 & 1.811 & 2.427 & 3.243 & 322 & & 7.612 & 10.06 & 1327 & 17.45 & 2996 & 50.95 & 5621 \\ \hline Period 40 & 1.489 & 2208 & 3.262 & 4.801 & 7040 & 1029 & 14.97 & 21.72 & 31.41 & 4526 & 9305 & 1889 & 2679 \\ \hline erind 50 & 1645 & 2692 & 4.384 & 7107 & 11.47 & 18.42 & 2946 & 46.90 & 7436 & 1174 & 2890 & 7002 & 1084 \\ \hline \end{tabular} Print Done alue of each scenario using an 8% discount rate. Which scenario yields the highest present value? Round to the nearest dollar feach scenario using an 8% discount rate. (Round the amounts to the nearest dollar) More info 1. $7,000 per year at the end of each of the next five years 2. $47,450 (lump sum) now 3. $100,050 (lump sum) five years from now Reference Future Value of Ordinarv Annuitv of S1 Reference