Scenario 5-7

Solvo various time value of money scenarios (Click the icon to view the scenarios.) (Click tho icon to view the present value of 51 table) (Click the icon to view the present value of annuity of $1 tablo (Click the icon to view the future value of $1 table) (Click the icon to view the future value of annuity of S1 table) Scenario 4. Bonnie plans to invest $3,000 at the end of each year for the next seven years. Assurning a 14% interest rato, what will het investment bo worth seven years from now? (Round your answer to the nearest whole dollar) 32190 Scenario 6. Assuming a 6% interest rate how much would Penelope have to invest now to be able to withdraw $13,000 at the end of every year for the next nine years? (Round your answer to the nearest wholo dollar) mit Future value w Present value Scenario 6. Ray is considering a capital investment that costs $10,000 and will provide not cash now for three years. Using a hurdle rate of 10%, find the NPV of the investment (Round your answer to the nearest whole dollar Uso parentheses or a minus sign to represent a negative NPV) Net Prosent Value (NPV) Scenario 7. What is the IRR of the capital investment described in Queston 02 The IRR is the interest rate at which the investment NPV 0 Word 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 mission to representa negative NPV) Not Present Vale IV) The IRR for the projects Enter any number in the edit fields and then continue to the next question i More Info el 1s ni al nd 1. Adam just hit the jackpot in Las Vegas and won $40,0001 If he invests it now, at a 14% interest rate how much will it be worth in 20 years? 2. Alan would like to have $4,000,000 saved by the time he retires in 30 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? 3. Assume that Stephanie accumulates savings of $1.5 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 fifteen years? 4. Bonnie plans to invest $3,000 at the end of each year for the next seven years Assuming a 14% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Penelope have to invest now to be able to withdraw $13,000 at the end of every year for the next nine years? 6. Ray is considering a capital investment that costs $510,000 and will provide the following net cash inflows nsi men PV) Year Net Cash Inflow he Year 1.... $302,000 $196,000 strat dolla Year 2.... Year 3.... $ 105,000 PV) 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? ect is Print Done 7 the Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.9800.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 30.971 0.9420.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.9240.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0 482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0621 0.567 0.519 0.476 0.437 0.402 Period 60.942 0.888 0.837 0 790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.3700 335 Period 70.933 0.8710.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 80.923 0.853 0.789 0.731 0.677 0.6270.540 0.467 0.4040.351 0.305 0 266 0233 Period 90.914 0.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 0.905 0.820 0.744 0.676 0 614 0.558 0.463 0.386 0.322 0 270 0.227 0.191 0.162 10 Period 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0 287 0237 0.1950 162 0 135 11 Period 0.8870.788 0 701 0.625 0.5570 497 0.397 0.319 0.257 0.2080 168 0.1370 112 12 Period 0.8790 7730 681 0.601 0.530 0 469 0.368 0.290 0 229 0.182 0.145 0.116 0.093 13 Per 0.870 0.7580 661 0.577 0.505 0.442 0.340 0 263 0.205 0.160 0.125 0.0990 078 114 Period 0.8610 743 0.642 0555 0.481 0 417 0.315 0.239 0.1830 140 0.108 0.084 0.065 15 Period L0 820 10 673 10.554 456 10 377 10 312 10 215 10 149 10 104 10.073 10.051 0.037 10.026 od Print Done Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 10101020 1030 1040 1050 1.060 1.080 1.100 1.120 1.140 1 160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.1581.191 1.260 1 331 1.405 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 1.574 1.689 1 811 1.939 2.074 Period 5 1051 1 104 1.159 1217 1.2761338 1.469 1611 1.762 1925 2100 2288 2.488 Period 6 1062 1.126 1.194 1265 1.340 1.419 1.587 1772 1.9742 195 2.436 2700 2.986 Period 7 1072 1.149 1.230 1.316 1.407 1.5041714 1.949 2.2112.5022 826 3 185 3.583 Period 8 1 0831 172 1 267 1 369 1.4771 594 1.85121442 476 2.8533 278 3.759 4.300 Period 9 1 094 1.195 1.305 1.423 1.551 1689 1.999 2358 27733.252 3.803 4.435 5 160 Period 10 1.1051 219 1.344 1480 1.629 1.791 2.159 2.594 3.106 3.7074 411 5.234 6 192 Period 11 1 116 1 243 1 384 1 539 1710 1.898 2 332 2 853 3.479 4 226 5.117 6.176 7 430 Period 12 1 127 1268 1426 1601 1796 2.012 2.518 3 138 3 896 4 818 5.9367288 8.916 Period 13 1 1381 294 1 469 1.665 1.886 2133 2 720 3 452 4.3635 492 6 886 8599 10 699 Period 14 1 149 | 1319 1.513 1.732 1 980 2.261 2 937 3.797 4.887 6261 7.988 10 147 12 839 Period 15 11611 346 1.558 1.801 2.0792.397 3.172 4.177 5.474 7.1389.266 11.974 15.407 Period 20 1.220 1.486 1 806 2 191 2.653 3 207 4.661 6 727 9 646 13 743 19 41 27 393 38 338 Period 25 1.28216412094 2.666 3 386 4 292 6 848 10 835 17 000 26 462 40.874 62.669 95 396 Period 30 1 348 1.811 2 427 3 243 4322 5743 10 063 17 449 29.96050 950 85 850 143.371 237 376 Period 40 1.489 2 208 3 262 4 801 7040 10 286 21 725 45 259 93.051 188,884378.721750 3781,469 772 ne i Reference 1 on con Con 4% 5% 14% 16% 20% nie ers sum ? Present Value of Annuity of $1 Periods 1% 2% 3% 6% 8% 10% 12% 18% Period 1 0990 0.980 0971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0 847 0833 Period 2 1970 1.942 1913 1 886 1859 1833 1 783 1736 1690 1 647 1605 1.566 1.528 Period 3 2 941 2.884 2.829 2 775 2.723 2.673 2.577 2.487 2.402 2. 3222 246 2174 2 106 Period 4 3.902 3 808 3.717 3630 3.546 3.465 3.312 3.170 3.037 29142798 2690 2 589 Period 5 4.853 4.713 4 580 4 452 4.329 4212 3.993 3.791 3.605 3.433 3.274 3.127 2 991 Period 6 5 795 5.601 5.417 5.242 5 076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3 326 Period 7 6 728 6 472 6.230 6.002 5.786 5.582 5 206 4.868 45644 288 4.039 3.812 3.605 Period 8 7 652 7.325 7020 6.733 6 463 6.210 5.747 5.335 4.968 4 639 4.344 40783.837 Period 9 8.566 8.162 7 786 7435 7 108 6.802 6.247 5.759 5.328 4.9464.607 4 303 4031 Period 9.471 8.983 8 530 8.111 7 722 7 360 6.710 6 145 5 6505.2164 833 44944 192 10 Period 10.368 9787 9.253 8.760 8 306 7 887 7 139 6.495 5.938 5.4535 029 4.656 4 327 11 Period 11 255 10 575 9.954 0.385 8.863 8.384 7.536 6.814 6 194 5 660 5.1974793 4.439 ay is inve alue That 12 inted whol Period 12. 134 11 348 10 635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5342 4.910 4.533 13 Period 13 004 12.106 11 296 10.563 9 899 9.295 8 244 7.367 6 628 6.0025.468 5.008 4.611 Period 13 865 12.849 11 938 11 118 10 380 9 712 8559 7.606 6 811 6 1425 575 5.092 4.675 15 Period 18.046 16.35114 877/13 590 12 462 11 470.9 818 18.514 746916 623 15 929 5 353 1 4 870 114 alue me pro mmber Print Done Reference 1 6 16% 1.000 18% 1.000 20% 1.000 2.160 2.180 2 200 3.506 3.572 3.640 5 066 5 215 5.368 6.877 7.154 7 442 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 8% 10% 12% 14% Period 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1 Period 2010 2020 2030 2040 2050 2060 2.080 2.100 2120 2 140 2 Period 3.030 3.0603.091 3.122 3.153 3.184 3.246 3.3103374 3.440 3 Period 4.060 4 122 4.184 4.246 4.310 4.375 4.506 4641 4 779 4.921 4 Period 5.101 52045.309 5 416 5.526 5.6375.8676 1056 353 6.610 5 Period 6 152 6 308 6.468 66336 802 6.975 7336 7.716 8 115 8.536 6 Period 7214 74347.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 7 Period 8.286 85838 892 9.214 9.549 9.897 10.637 11.436 12300 13 233 8 Period 9.369 9755 10 159 10 583 11 027 11 491 12 488 13.579 14 776 16.085 9 Period 10.462 10.950 11 464 12.006 12 578 13.181 14.487 15.937 17549 19 337 10 Period 11.567 12 16912808 13,486 14 207 14 972 16.645 18531 20655 23 045 8.977 9.442 9.930 11.414 12 142 12916 14.240 15.327 16.499 17 519 19.086 20 799 an 21.321 23 521 25.959 25 733 28.755 32 150 11 Print Done 11:02 PM