scenario 1-5
scenario 6-8
plve 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 present value of annuity of $1 table.) (Click the icon to view the future value of $1 table.) (Click the icon to view the future value of annuity of $1 table.) cenario 1. Charie just hit the jackpot in Las Vegas and won $65,000! if he invests it now at a 12% interest rate, how much will i be worth in 15 years? (Round your answer to the nearest whole dollar) Future value Scenario 2. Forest would like to have $3,500,000 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? (Round your answer to the whole dollar.) Present value Scenario 3. Assume that Zoey accumulates savings of $1 milion by the time she retres. If she invests this savings at 10 %, how much money will she be able to withdraw at the end of each year for 20 years? a your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw Scenario 4. Bonnie plans to invest $6,500 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? (Round your answer to the ne whole dollar) Future value Scenario 5. Assuming a 10% interest rate, how much would Tem have to invest now to be able to withdraw $10,000 at the end of every year for the next nine years? (Round your answer to the nearest whole do Present value $ Scenario 4. Bon pars o ives 00 arne ena or esn year e ne svenyears Pu go whole dolar.) Year Net Cash Inflow Future value $302,000 iery year for the next nine years? (Round your answer to the nearest whole dolar) 2 Scenario 5. Assuming a 10% interest rate, how much would Teri have to invest now to be $196,000 3 $106,000 Present value $ Scenario 6. Aaron is considering a capital investment that costs $500,000 and will provide ret cash inflows for three years, Using a hurdle rate of 12 %, ind the NPV of the investment. (Round your answer to the nearest whole dolar Use panentheses or a minus sign to represent a negative NPV) Net cash infows for 3 years Net Present Value (NPV) Scenario 7. What is the IRR of he capital investment described in Question 67 0. We tred 12 % in quesion 6, now wel try 14% and calculate the NPV (Round your answer to the nearest whole dollar Use perentheses or a minus sign to The RR is the interest rate at which the investment NPV represent a negative NPV) Net Present Value (NPV) The IRR for the project is
