Solve various time value of money scenarios (Click the icon to view the scenarios.) Scenario 1. Ben just hit the jackpot in Las Vegas and won $50,0001 If he invests it now, at a 12% interest rate, how much will it be worth in 135 years? (Round your answer to the nearest whole dillar) Future value Scenario 2. Hunt 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? (Round your an to the nearest whole dollar) Present value Scenario 3. Assume that Zoey 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 15 years? (Round your answer to the nearest whole dollar and enter as a positive amount) Amount able to withdraw = Scenario 4. Geena plans to invest $2,000 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 valu Scenario 5. Assuming a 12% interest rate, how much would Amanda have to invest now to be able to withdraw $9,000 at the end of every year for the next ten years? (Round your answer to the Dearest whole dollar) Present value Scenario 6. Aaron is considering a capital investment that costs $525,000 and will provide net cash flown for the 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 62 The IRR is the interest rate at which the investment NPV 0. We tried 10% in question 6, now well 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 RR for the project is Solve various time value of money (Click the icon to view the scen (Click the icon to view the pres (Click the icon to view the futur Future value Scenario 2. Hunt would like to have to the nearest whole dollar) Prisent value Scenario 3. Assume that Zoey accu 15 years? (Round your answer to the Amount able to withdraw - Scenario 4. Geena plans to invest S to the nearest whole dollar) Future value Scenario 5. Assuming a 12% intere nearest whole dollar) Present value More info 1. Ben just hit the jackpot in Las Vegas and won $50,000 if he invests it now at a 12% interest rate, how much will it be worth in 15 years? 2. Hunt 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 10%, how much money will she be able to withdraw at the end of each year for fifteen years? 4. Geena plans to invest $2,000 at the end of each year for the next eight years Assuming a 12% interest rate, what will her investment be worth eght years from now? 5. Assuming a 12% interest rate, how much would Amanda have to inwest now to be able to withdraw $9,000 at the end of every year for the next ten years? 6. Aaron is considering a capital investment that costs $25,000 and will provide the following net cash inflows Year Year 1... Year 2 Year 3 Net Cash Inflow $302,000 $206,000 $108,000 Using a hurdle rate of 10%, find the NPV of the investment o fund his retirement goal? (Round your ne e be able to withdraw at the end of each year fo orth might years from now? (Round your wwww 7. What is the IRR of the capital investment described in Question 67 hext ten years? (Round your answer to the Scenario 6. Aaron is cons answer to the nearest who between 8% and 10% Net Present Value (NPV) Scenario 7. What is the I The IRR is the interest rat a minus sign to represent Net Present Value (NPV) The IRR for the project is between 10% and 12% between 12% and 14% bed in Question 67 between 14% and 15% Print Done find the NPV of the investment. (Round your We tried 10% in question 6, now we'll try 12% and calculate the NPV (Round your answer to the nearest whole dollar Use parenthese ning: 04:51 48 Reference Ben jus Present Value of $1 = Periods 1% 2% 8% Period 1 0.990 0.980 0.971. Hunt w Perlod 2 0.980 0.961 0.943 lue Period 3 0.971 0.942 0.915 0.889 0.840 3% 4% 5% 6% 12% 14% 16% 18% 0.962 0.952 0.943 0.926 0.909 0.893 0.925 0.907 0.890 0.857 0.826 0.797 0.864 10% 20% 0.877 0.862 0.847 0.833 0.769 0.743 0.718 0.694 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Assume Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Perlod 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 to with Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Geena Perlod 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 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 = Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Assumi Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 e = Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0.642 0.577 0.505 0.442 0.555 0.481 0.417 aron is Perlod 20 0.820 0.673 0.554 Calue ( Period 25 0.780 What is Period 30 0.742 Period 40 0.672 0.456 0.377 0.312 0.215 0.149 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.229 0.182 0.145 0.116 0.093 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.104 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 0.005 0.003 0.001 0.001 intere X the Reference Future Value of $1 -X Periods 1% 2% 3% 4% 74 Period 1 1.010 goa Period 2 1.020 Period 3 1.030 1.020 1.030 1.040 1.061 1.061 1.093 Period 4 1.041 1.082 1.126 Period 5 1.051 1.104 1.159 wat 5% 6% 8% 10% 12% 14% 10% 18% 1.040 1.050 1.060 1.000 1.100 1.120 1.140 1.160 1.100 1.062 1.103 1.124 1.166 1.210 1.254 1.300 1.348 1.392 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.217 1.276 1.338 1.469 1.611 1.782 1.925 2.100 20% 1.200 1.440 1.643 1.728 1.939 2.074 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.436 2.195 2.700 2.906 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 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 now Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 Period 12 1.127 1.268 1.426 1.601 1.539 1.710 1.796 2.012 2.332 1.898 2.853 3.479 4.226 5.117 6.176 7.430 2.518 3.138 3.896 4.818 5.936 7.288 8.916 dy Period 13 1.138 1.294 1.469 2.133 1.886 1.665 2.720 3.452 5.492 4.363 6.886 8.599 10.699 Period 14 Period 15 1.161 1.149 1.319 1.346 1.513 1.732 1.801 1.558 1.980 2.261 2.937 3.797 4.887 6.261 2.079 2.397 3.172 4.177 5.474 7.988 10.147 12.839 7.138 9.266 11.974 15.407 ves Period 20 1.220 1.486 Period 25 1.282 1.641 2.094 3.207 2.653 2.191 1.806 3.386 4.292 2.666 4.661 Period 30 1.348 1.811 2.427 3.243 4.322 6.727 9.646 13.743 19.461 27.393 10.835 17.000 26.462 40.574 62.669 6.848 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 38.338 95.396 Period 40 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 and won $50 Reference Future Value of Annulty of $1 Periods 1% 2% 3% 4% 1.000 aved by the t Period 1 Perlod 2 2.010 Period 3 3.030 3.060 3.091 Period 4 4.060 4.122 4.154 1.000 2.020 1.000 1.000 2.030 2.040 5% 6% 8% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.122 3.153 3.184 3.246 3.310 3.374 4.246 4.310 4.375 4.506 4.641 4.779 10% 12% 14% 16% 18% 20% 1.000 1.000 1,000 1.000 1.000 2.120 2.140 2.160 2.180 2.200 3.440 3.506 3.572 3.640 4.921 5.066 5.215 5.368 s of $1.5 m Period 5 5.101 5.204 5.309 5.416 5.528 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Perlod 6 6.152 6.308 6.468 6.633 Period 7 7.214 d of each y Period 8 Period 9 Period 10 8.286 9.369 ch would A Period 11 Period 12 Period 13 Period 14 Period 15 6.802 6.975 7.336 7.716 8.115 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 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 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.337 19.086 20.799 21.321 23.521 25.959 23.045 27.271 32.089 37.581 43.842 25.733 28.755 32.150 30.850 34.931 39.581 36.786 42.219 48.497 43.672 50.818 59.196 51.660 60.965 72.035 nt that cos t describe NPV 0 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Period 25 28.243 32.030 36.459 41.646 47.727 54.565 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 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 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 X Reference X nt Present Value of Annulty of $1 Periods 1% 5% g 2% 3% 4% 6% 8% 10% 12% 14% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 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 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.837 Period & 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 7.722 7.360 6.710 6.145 5.650 8.983 8.530 8.111 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 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 8.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 16% 18% 20% 0.862 0.847 0.833 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 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 6.623 6.873 5.929 5.353 4.870 6.097 5.467 4.948 6.177 5.517 4.979 5.545 4.997