Scenario 1. Jeff just hit the jackpot in Las Vegas and won $30,000! If he invests it now at a 12% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar.) Future value = $ Scenario 2. Evan would like to have $3,000,000 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 Tina accumulates savings of $1 million by the time she retires. If she invests this savings at 8%, 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. Cathy plans to invest $2,500 at the end of each year for the next eight years. Assuming a 14% 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 Katie have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value = $ Scenario 6. Chuckie is considering a capital investment that costs $535,000 and will provide net cash inflows for three years. Using a hurdle rate of 8%, 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 8% in question 6, now we'll try 10% 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 Present Value of $1 Periods 1 0 1. Jeff just hit the jackpot in Las Vegas and won $30,000! If he invests it now at a 12% interest rate, how much will it be worth in 20 years? 2. Evan would like to have $3,000,000 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 Tina accumulates savings of $1 million by the time she retires. If she invests this savings at 8%, how much money will she be able to withdraw at the end of each year for 20 years? 4. Cathy plans to invest $2,500 at the end of each year for the next eight years. Assuming a 14% interest rate, what will her investment be worth eight years from now? 5. Assuming a 12% interest rate, how much would Katie have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? Chuckie is considering a capital investment that costs $535,000 and will provide the following net cash inflows: 1% .990 0.980 0.971 0.961 0.951 5% 0.952 0.907 0.864 0.823 0.784 18% 0.847 0.718 0.609 0.516 0.437 0.452 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 6. HD oco voor 2% 3% 4% 0.980 0.971 0.962 0.961 0.943 | 0.925 0.942 0.915 0.889 0.924 0.888 0.855 0.906 0.863 0.822 0.888 0.837 0.790 0.871 0.813 0.760 0.853 0.789 0.731 0.837 0.766 0.703 0.820 0.744 0.676 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 0.673 0.554 0.456 0.610 0.478 0.375 0.5520.412 0.308 0.453 0.307 0.208 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 6% | 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 0.312 0.233 0.174 0.097 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.215 0.146 0.099 0.046 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.377 0.295 0.231 0.142 12% 14% 16% 0.893 0.877 0.862 0.797 | 0.769 0.743 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.476 0.507 0.456 0.410 0.400 0.354 0.404 0.351 0.305 0.361 0.308 0.263 0.322 0.270 0.227 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.205 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 Year Net Cash Inflow 1 ...... $306,000 2 ...... $198,000 3 ........ $104,000 Using a hurdle rate of 8%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 40 Future Value of $1 Present Value of Annuity of $1 | Periods Periods 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.736 rs fr 1.062 1.072 1.083 1.094 1.105 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 1.126 1.149 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 1.419 1.504 1.594 1.689 1.791 1.772 1.949 2.144 2.358 2.594 2.700 3.185 3.759 4.435 5.234 1.629 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 1% 2% 3% 4% 5% 6% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.577 3.902 3.808 3.717 3.630 3.546 3.465 3.312 4.853 4.713 4.580 4.452 4.329 4.212 3.993 5.795 5.601 5.417 5.242 5.076 4.917 4.623 6.728 6.472 6.230 6.002 5.786 5.582 5.206 7.652 7.325 7.020 6.733 6.463 6.210 5.747 8.566 8.162 7.786 7.435 7.108 6.802 6.247 9.471 8.983 8.530 8.111 7.722 7.360 6.710 10.368 9.787 9.253 8.760 8.306 7.887 7.139 11.255 10.575 9.954 9.385 8.863 8.384 7.536 | 11.348 10.635 9.986 9.394 8.853 7.904 13.004 12.106 11.296 10.563 9.899 9.295 8.244 13.865 12.849 11.938 11.11810.380 9.712 8.559 18.046 16.351 14.877 13.590 12.462 | 11.470 9.818 22.023 19.523 17.413 15.622 14.094 12.783 10.675 25.808 | 22.396 | 19.600 17.292 | 15.372 | 13.765 11.258 32.835 27.355 23.115 19.793 17.159 15.046 11.925 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 10% 12% 0.909 0.893 1.690 2.487 2.402 3.170 3.037 3.791 3.605 4.355 4.111 4.868 4.564 5.335 4.968 5.759 5.328 6.145 5.650 6.495 5.938 6.814 6.194 7.103 6.424 7.367 7.606 6.811 8.514 7.469 9.077 7.843 9.427 8.055 9.7798.244 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.929 6.097 6.177 6.233 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5.548 1.243 1.268 1.294 1.319 1.346 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 4.870 4.948 4.979 4.997 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 V of 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 6.628 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 | 45.259 6.176 7.288 8.599 10.147 11.974 5.453 5.660 5.842 6.002 6.142 1.486 1.641 1.811 2.208 9.646 17.000 29.960 93.051 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 st w 6.623 6.873 7.003 7.105 | 40 Periods 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 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 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 20% 1.000 2.200 3.640 5.368 7.442 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 6.802 8.142 9.549 11.027 12.578 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 9.930 12.916 16.499 20.799 25.959 12.006 16% 18% 1.000 1.000 2.160 2.180 3.506 3.572 5.066 5.215 6.877 7.154 8.977 9.442 11.414 12.142 14.240 15.327 17.519 19.086 21.321 23.521 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 115.380 146.628 249.214 342.603 530.312790.948 2,360.757 4,163.213 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 91.025 181.871 356.787 1,342.025 32.150 39.581 48.497 59.196 72.035 24.297 32.030 40.568 60.402 29.778 41.646 56.085 95.026 95.026 33.066 47.727 66.439 120.800 36.786 45.762 54.865 73.106 79.058 113.283 154.762259.057 57.275 98.347 164.494 442.593 72.052 133.334 241.333 767.091 186.688 471.981 1,181.882 7,343.858