Scenario 1-7

Solve 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 future 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 annuity of $1 table.) Scenario 1. Ben just hit the jackpot in Las Vegas and won $40,000! If he invests it now at a 14% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar.) Future value = $ 549,739 Scenario 2. Forest would like to have $2,500,000 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 Maria accumulates savings of $1 million by the time she retires. 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? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw = $ Scenario 4. Hannah plans to invest $4,000 at the end of each year for the next eight years. Assuming a 12% 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 6% interest rate, how much would Katie have to invest now to be able to withdraw $11,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar.) Present value = $ Scenario 6. Chuckie is considering a capital investment that costs $520,000 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? Enter any number in the edit fields and then continue to the next question. Solve various time value of money scenarios. AlClick the icon to view the scenarios.) (Click the icon to view the present value of $1 table.) (Click the icon to view the future 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 annuity of $1 table.) Present value = $ Scenario 3. Assume that Maria accumulates savings of $1 million by the time she retires. 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? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw = $ Scenario 4. Hannah plans to invest $4,000 at the end of each year for the next eight years. Assuming a 12% 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 6% interest rate, how much would Katie have to invest now to be able to withdraw $11,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar.) Present value = $ Scenario 6. Chuckie is considering a capital investment that costs $520,000 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 Enter any number in the edit fields and then continue to the next question Reference More Info Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value table.) (Click the icon to view the future value of Present Value of $1 Periods Present value = $| 1 2 1% 0.990 0.980 0.971 0.961 0.951 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 3 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 20% 0.833 0.694 0.579 0.482 0.402 las a Scenario 3. Assume that Maria accumulates sa positive amount.) 4 5 1. Ben just hit the jackpot in Las Vegas and won $40,000! If he invests it now at a 14% interest rate, how much will it be worth in 20 years? 2. Forest would like to have $2,500,000 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 Maria accumulates savings of $1 million by the time she retires. 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? 4. Hannah plans to invest $4,000 at the end of each year for the next eight years. Assuming a 12% interest rate, what will her investment be worth eight years from now? 5. Assuming a 6% interest rate, how much would Katie have to invest now to be able to withdraw $11,000 at the end of every year for the next ten years? 6. Chuckie is considering a capital investment that costs $520,000 and will provide the following net cash inflows: Amount able to withdraw = $ 6 7 Scenario 4. Hannah plans to invest $4,000 att 0.942 0.933 0.923 0.914 0.905 8 9 10 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 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 Yea Future value = $ Scenario 5. Assuming a 6% interest rate, how 0.804 0.788 Year Net Cash Inflow Present value = $ 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.722 0.701 0.681 0.661 0.642 0.773 0.758 0.743 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 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 0.195 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 1 byl 2 Scenario 6. Chuckie is considering a capital in represent a negative NPV.) $305,000 $198,000 $104,000 3 Net Present Value (NPV) 0.820 0.780 0.742 0.026 0.010 20 25 30 40 = $ 0.673 0.610 0.552 0.453 0.554 0.478 0.412 0.307 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.149 0.092 0.057 0.215 0.146 0.099 0.046 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.004 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? 0.672 0.022 0.001 Scenario 7. What is the IRR of the capital inve The IRR is the interest rate at which the investr les Print Done Print Done Net Present Value (NPV) = $ The IRR for the project is Enter any number in the edit fields and then continue to the next question. ous time value of money scenarios. the icd ek the id Reference e.) ek the id Reference value Present Value of Annuity of $1 Future Value of Annuity of $1 Periods 4% 3. Assi mount. 1 2 1% 0.990 1.970 2.941 3.902 4.853 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 5% 0.952 1.859 2.723 3.546 4.329 6% 0.943 1.833 2.673 3.465 4.212 8% 0.926 1.783 2.577 3.312 3.993 10% 0.909 1.736 2.487 3.170 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 Periods 1 2 3 4 5 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 5% 1.000 2.050 3.153 4.310 5.526 1.000 2.040 3.122 4.246 5.416 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.436 13.579 15.937 18% 1.000 2.180 3.572 5.215 7.154 3 20% 1.000 2.200 3.640 5.368 7.442 ble to 4 5 4. Han 6 8.115 alue 4.355 4.868 7 5.795 5.601 6.728 6.472 7.652 7.325 8.566 8.162 9.471 8.983 5.417 6.230 7.020 7.786 8.530 8 9 10 5.242 6.002 6.733 7.435 8.111 5.076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.360 4.623 5.206 5.747 6.247 6.710 5.335 4.111 4.564 4.968 5.328 5.650 3.889 3.685 4.288 4.039 4.639 4.344 4.946 4.607 5.216 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 6 7 8 9 10 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 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 5. Assy 5.759 6.145 alue 6. Chul a nega 11 12 13 14 15 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 11 12 13 14 15 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.015 23.276 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 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 ent Valu 26.870 36.459 7. Wha 20 25 30 40 7.469 7.843 8.055 8.244 6.623 6.873 7.003 7.105 5.929 6.097 6.177 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 20 25 30 40 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 259.057 57.275 98.347 164.494 442.593 72.052 91.025 115.380 146.628 186.688 133.334 181.871 249.214 342.603 471.981 241.333 356.787 530.312 790.948 1,181.882 767.091 1,342.025 2,360.757 4,163.213 7,343.858 47.575 the in 75.401 Ent Valy