You work for a well-known radio programming company, which has been the market leader for the past 20 years, The company has decided to diversify by providing services, adding value to their products. What kind of project management structure would you recommend they use for this project and why? If necessary, make appropriate assumptions, but please state your assumptions.

Solve various time value of money scenarios. 1. Irving just hit the jackpot in Las Vegas and won $35,000! If he invests it now, at a 10% interest rate, how much will it be worth in 15 years? 2. Trent would like to have $3,500,000 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 Ramona accumulates savings of $1.5 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for twenty years? 4. Jessica plans to invest $4,000 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? 5. Assuming a 6% interest rate, how much would Katie have to invest now to be able to withdraw $13,000 at the end of every year for the next nine years? 6. Victor is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Year 1 ... Year 2 ... Year 3... Using a hurdle rate of 12%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Net Cash Inflow $304,000 $206,000 $108,000 Scenario 1. Irving just hit the jackpot in Las Vegas and won $35,000! If he invests it now at a 10% interest rate, how much will it be worth in 15 years? (Round your answer to the nearest whole dollar.) Future value Scenario 2. Trent would like to have $3,500,000 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 Ramona accumulates savings of $1.5 million by the time she retires. If she invests this savings at 12%, 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. Jessica plans to invest $4,000 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 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 $13,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value = Scenario 6. Victor is considering a capital investment that costs $510,000 and will provide net cash inflows for three years. Using a hurdle rate of 12%, 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 12% in question 6, now we'll try 14% 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 = Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 2% 3% 4% 1.010 1.020 1.030 1.040 1.020 1.040 1.061 1.082 1.093 1.125 1.030 1.061 1.041 1.082 1.126 1.051 1.104 1.159 Period 30 Period 40 1.062 1.126 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.294 1.149 1.319 1.161 1.149 1.230 1.194 1.265 1.340 1.419 1.316 1.407 1.504 1.172 1.267 1.369 1.477 1.594 1.195 1.305 1.423 1.551 1.689 1.219 1.344 1.480 1.629 1.791 1.243 1.268 5% 1.050 1.060 1.103 1.124 1.158 1.191 1.170 1.216 1.262 1.217 1.276 1.338 1.220 1.486 1.282 1.641 1.348 1.811 Future Value of $1 12% 14% 16% 18% 10% 1.100 1.120 1.140 1.160 1.180 1.210 1.254 1.300 1.346 1.392 6% 8% 1.080 1.166 1.260 1.331 1.405 1.482 1.561 1.643 1.360 1.464 1.574 1.689 1.811 1.939 1.469 1.611 1.762 1.925 2.100 2.288 1.384 1.539 1.710 1.898 2.332 2.853 1.426 1.601 1.796 2.012 2.518 3.138 1.886 2.133 2.720 3.452 1.980 2.261 2.937 3.797 4.887 6.261 2.079 2.397 3.172 1.469 1.665 1.513 1.732 1.346 1.558 1.801 4.177 5.474 7.138 9.646 10.835 17.000 1.806 2.191 2.653 2.094 2.666 3.386 4.322 7.040 2.427 3.243 1.489 2.208 3.262 4.801 1.587 1.772 1.974 2.195 1.714 1.949 2.211 2.502 1.851 2.144 2.476 2.853 1.999 2.358 2.773 3.252 2.159 2.594 3.106 3.707 3.479 3.896 4.363 5.492 6.886 8.599 4.226 5.117 6.176 4.818 5.936 7.288 7.988 10.147 9.266 11.974 3.207 4.292 2.436 2.700 2.826 3.185 3.278 3.759 3.803 4.411 5.234 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 4.435 5.160 6.192 7.430 8.916 10.699 12.839 15.407 4.661 6.727 19.461 27.393 38.338 13.743 26.462 40.874 62.669 95.396 6.848 10.063 17.449 29.960 50.950 85.850 143.371 237.376 5.743 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Periods 1% 0.990 0.980 Period 1 Period 2 Period 3 Period 4 Period 5 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 Period 6 Period 7 Period 8 Period 9 Period 10 0.971 0.961 0.951 0.906 4% 5% 0.962 0.952 0.925 0.889 Present Value of $1 6% 8% 0.924 0.888 0.855 0.863 0.822 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 12% 14% 10% 0.926 0.909 0.893 0.877 0.857 0.826 0.797 0.769 0.794 0.751 0.735 0.683 0.681 0.621 16% 18% 20% 0.862 0.847 0.833 0.743 0.718 0.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 0.516 0.482 0.567 0.519 0.476 0.437 0.402 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 0.135 0.112 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.703 0.645 0.592 0.500 0.676 0.614 0.558 0.463 0.914 0.837 0.766 0.429 0.350 0.195 0.162 0.397 0.208 0.168 0.137 0.905 0.820 0.744 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.319 0.257 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099. 0.057 0.033 0.020 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.024 0.016 0.012 0.007 0.005 0.003 0.001 0.564 0.507 0.456 0.513 0.452 0.400 0.467 0.404 0.351 0.424 0.361 0.308 0.322 0.270 0.386 0.287 0.237 0.093 0.078 0.065 0.026 0.010 0.004 0.001 Present Value of Annuity of $1 Periods 1% 2% 3% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.877 0.862 0.847 0.833 4% 5% 6% 8% 10% 12% 0.962 0.952 0.943 0.926 0.909 0.893 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 Period 2 1.970 1.942 1.913 1.886 1.528 Period 3 2.106 Period 4 3.902 3.808 2.798 2.690 2.589 3.127 Period 5 4.853 2.991 Period 6 Period 7 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 3.326 3.605 3.837 4.031 4.192 4.327 5.008 4.611 7.139 6.495 5.938 5.453 5.029 4.656 7.536 6.814 6.194 5.660 5.197 4.793 4.439 7.904 7.103 6.424 5.842 5.342 4.910 4.533 8.244 7.367 6.628 6.002 5.468 8.559 7.606 6.811 6.142 5.575 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 5.092 4.675 5.353 6.233 5.548 4.870 4.948 4.979 4.997 Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 2% 3% 4% 1.000 1.000 1.000 1.000 2.040 2.010 2.020 2.030 3.091 3.122 3.153 3.184 4.184 4.246 4.310 4.375 5.416 5.309 5.526 5.637 3.030 3.060 4.060 4.122 5.101 5.204 Future Value of Annuity of $1 6.152 7.214 8.286 9.369 10.462 10.950 6.308 6.468 7.434 7.662 8.583 8.892 9.755 10.159 5% 6% 1.000 1.000 1.000 2.050 2.060 2.080 8% 10% 1.000 2.100 2.120 3.246 3.310 3.374 4.506 5.867 6.105 4.641 4.779 6.353 6.633 6.802 6.975 7.898 8.142 8.394 9.214 9.549 9.897 10.583 11.027 11.491 11.464 12.006 12.578 13.181 12% 14% 16% 1.000 1.000 1.000 2.140 2.160 3.440 3.506 4.921 5.066 6.610 6.877 8.536 8.977 9.442 12.142 15.327 16.085 17.519 19.086 19.337 23.045 25.733 21.321 23.521 28.755 27.271 30.850 34.931 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 36.786 42.219 48.497 43.672 50.818 59.196 72.035 51.660 60.965 18% 1.000 2.180 3.572 5.215 7.154 7.336 7.716 8.115 8.923 9.487 10.089 10.730 11.414 10.637 11.436 12.300 13.233 14.240 12.488 13.579 14.776 14.487 15.937 17.549 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 186.688 115.380 146.628 249.214 342.603 471.981 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 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