Scenario 5. Assuming a 12% interest rate, how much would Marisa have to invest now to be able to withdraw $8,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value = Scenario 6. Sammy is considering a capital investment that costs $505,000 and will provide net cash inflows for three years. Using a hurdle rate of 10%, 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 10% in question 6, now we'll try 12% 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 5. Ass Year Net Cash Inflow r investmen Year 1 $308,000 to be Year 2 ... $200,000 every year F Year 3 ... $96,000 vide het cash inflows for three years. Using a hurdle rat Net cash inflows for 3 years Scenario 5. Assuming a 12% interest rate, how much would Marisa ha Present value Scenario 6. Sammy is cor parentheses or a minus si costs $50 between 8% and 10% Net Present Value (NPV) between 10% and 12% Scenario 7. What is the IF ed in Qu between 12% and 14% The IRR is the interest rat We tried Net Present Value (NPV) between 14% and 16% The IRR for the project is 1. Ben just hit the jackpot in Las Vegas and won $55,000! If he invests it now, at a 12% interest rate, how much will it be worth in 15 years? 2. Curtis would like to have $4,000,000 saved by the time he retires in 40 years. How much does he need to invest now at a 14% interest rate to fund his retirement goal? 3. Assume that Zoey accumulates savings of $1.5 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 fifteen years? 4. Ivana 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 Marisa have to invest now to be able to withdraw $8,000 at the end of every year for the next nine years? 6. Sammy is considering a capital investment that costs $505,000 and will provide the following net cash inflows: Year Year 1 Year 2 Year 3 --- Net Cash Inflow $308,000 $200,000 $96,000 Using a hurdle rate of 10%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Present Value of Annuity of $1 Periods Period 1 Period 2 1.970 Period 3 2.941 Period 4 3.902 Period 5 4.853 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 Period 11 10.368 Period 12 11.255 1% 0.990 2% 3% 4% 0.980 0.971 0.962 1.942 1.913 1.886 2.884 2.829 2.775 3.808 3.717 3.630 4.713 4.580 4.452 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 2.723 2.673 2.577 2.487 2.402 2.322 2.246 3.546 3.465 3.312 3.170 3.037 2.914 4.329 4.212 3.993 3.791 3.605 1.528 2.174 2.798 2.690 2.589 2.106 3.433 3.274 3.127 2.991 7.887 7.139 6.495 5.938 8.384 7.536 6.814 6.194 Period 13 12.134 8.853 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 9.787 9.253 8.760 8.306 10.575 9.954 9.385 8.863 11.348 10.635 9.986 9.394 3.605 4.078 3.837 4.946 4.607 4.303 4.031 5.216 4.833 4.494 4.192 5.453 5.029 4.656 4.327 5.660 5.197 4.793 4.439 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 7.469 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 8.055 7.003 6.177 5.517 4.979 8.244 7.105 6.233 5.548 4.997 Future Value of $1 Periods 1% 2% 3% 4% 5% Period 1 1.010 1.020 1.030 1.040 1.050 Period 2 1.020 1.040 1.061 1.082 1.103 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 6% 8% 10% 12% 14% 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.405 16% 18% 20% 1.200 1.440 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.574 1.762 1.689 1.811 1.939 2.074 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.419 1.587 1.772 1.714 1.949 1.974 2.195 2.436 2.700 2.986 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 Period 10 1.105 1.219 1.344 1.480 1.629 1.689 1.999 2.358 1.791 2.159 2.594 3.106 2.773 3.252 3.707 3.803 4.435 5.160 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 Period 20 1.220 1.486 1.806 2.191 2.653 Period 25 1.282 1.641 2.094 2.666 Period 30 1.348 1.811 2.427 3.243 Period 40 1.489 2.208 3.262 4.801 6.886 8.599 10.699 7.988 10.147 12.839 11.974 15.407 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 5.492 4.887 6.261 4.177 5.474 7.138 9.266 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 Period 9 Period 10 9.369 9.755 10.159 10.583 11.027 11.491 10.462 10.950 11.464 12.006 12.578 13.181 Period 11 11.567 12.169 Period 12 12.683 Period 13 13.809 9.487 10.089 11.436 12.300 12.488 13.579 14.776 14.487 15.937 17.549 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 8.923 10.730 11.414 12.142 12.916 10.637 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 37.581 43.842 42.219 48.497 43.672 50.818 59.196 51.660 60.965 72.035 115.380 146.628 186.688 342.603 471.981 790.948 1,181.882 Present Value of $1 Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 6% 8% 10% 0.952 0.943 0.926 0.909 0.857 0.826 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.743 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.718 0.694 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.400 0.404 0.351 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.361 0.322 0.354 0.314 0.279 0.305 0.266 0.308 0.263 0.225 0.233 0.194 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 Period 12 0.887 0.788 0.701 0.625 Period 13 0.879 Period 14 0.870 Period 15 0.861 0.773 0.681 0.758 0.661 0.577 0.505 0.442 0.743 0.642 0.555 0.481 0.557 0.497 0.397 0.319 0.601 0.530 0.469 0.287 0.257 0.237 0.195 0.162 0.135 0.208 0.168 0.137 0.112 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.340 0.263 0.205 0.417 0.315 0.239 0.183 0.160 0.125 0.140 0.108 0.084 0.099 0.078 0.065 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.673 0.554 0.456 0.610 0.478 0.375 0.295 0.552 0.412 0.308 0.231 0.453 0.307 0.208 0.142 0.377 0.312 0.215 0.149 0.104 0.233 0.146 0.092 0.174 0.099 0.057 0.097 0.046 0.022 0.073 0.051 0.037 0.026 0.059 0.038 0.024 0.016 0.010 0.033 0.020 0.012 0.007 0.004 0.011 0.005 0.003 0.001 0.001