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. Harold just hit the jackpot in Las Vegas and won $30,000! If he invests it now, at a 12% interest rate, how much will it be worth in 15 years? (Round your answer to the nearest whole dollar.) Future value = Scenario 2. Alan would like to have $3,000,000 saved by the time he retires in 30 years. How much does he need to invest now at a 10% interest rate to fund his retirement goal? (Round your answer to the nearest whole dollar.) Present value Scenario 3. Assume that Nancy 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. Geena plans to invest $3,500 at the end of each year for the next eight years. Assuming a 10% 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 Vanna have to invest now to be able to withdraw $10,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar.) Present value = Scenario 6. Chuckle is considering a capital investment that costs $525,000 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.) TIMMITTIVIV Amount able to withdraw = Scenario 4. Geena plans to invest $3,500 at the end of each year for the next eight years. Assuming a 10% 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 Vanna have to invest now to be able to withdraw $10,000 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 $525,000 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 = More info 1. Harold just hit the jackpot in Las Vegas and won $30,000! If he invests it now, at a 12% interest rate, how much will it be worth in 15 years? 2. Alan would like to have $3,000,000 saved by the time he retires in 30 years. How much does he need to invest now at a 10% interest rate to fund his retirement goal? 3. Assume that Nancy 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. Geena plans to invest $3,500 at the end of each year for the next eight years. Assuming a 10% interest rate, what will her investment be worth eight years from now? 5. Assuming a 6% interest rate, how much would Vanna have to invest now to be able to withdraw $10,000 at the end of every year for the next ten years? 6. Chuckie is considering a capital investment that costs $525,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1 $298,000 Year 2 ... $208,000 Year 3 $102,000 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? Reference Future Value of $1 Present Value of $1 Periods 1% Periods Period 1 Period 2 1% 0.990 0.980 2% 3% 4% 8% 5% 6% 0.980 0.971 0.962 0.952 0.943 0.926 0.925 0.961 0.943 0.907 0.890 0.857 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.584 0.507 0.456 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 10% 12% 14% 16% 18% 0.909 0.893 0.877 0.862 0.847 0.833 0.826 0.797 0.769 0.743 0.718 0.694 0.751 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 Period 1 20% Period 2 Period 3 Period 4 0.712 0.675 0.641 0.609 0.579 Period 5 2% 1.010 1.020 1.020 1.040 1.030 1.061 1.041 1.082 1.051 1.104 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.050 1.030 1.040 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.126 1.170 1.216 1.262 1.360 1.484 1.574 1.689 1.811 1.939 2.074 1.159 1.217 1.276 1.338 1.469 1.811 1.782 1.925 2.100 2.288 2.488 Period 6 Period 7 0.410 0.370 0.335 0.354 0.314 0.279 Period 11 0.898 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 Period 20 0.820 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Period 20 Period 25 Period 30 Period 40 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 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 1.172 1.267 1,369 1.477 1.594 1.083 1.851 2144 2.476 2.853 3.278 3.759 4.300 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 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 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 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 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 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 7.430 Print Done Print Done Reference Future Value of Annuity of $1 Periods 1% 2% 3% Present Value of Annuity of $1 Period 1 1.000 1.000 Periods 1% Period 1 0.990 Period 2 1.970 Period 3 2.941 Period 4 2% 3% 4% 0.980 0.971 0.962 1.942 1.913 1.886 5% 6% 0.952 0.943 Period 5 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 Period 6 5.795 Period 7 6.728 Period 8 7.652 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 6.472 6.230 8.002 5.786 5.582 5.206 4.868 4.564 7.325 7.020 8.733 6.463 6.210 5.747 5.335 4.968 Period 9 8.568 Period 10 9.471 8.182 7.788 7.435 7.108 6.802 6.247 5.759 5.328 8.983 8.530 8.111 7.722 7.380 6.710 6.145 5.650 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 6.002 0.862 0.847 0.833 1.605 1.566 1.528 2.246 2.174 2.106 2.798 2.690 2.589 3.274 3.127 2.991 3.685 3.498 3.326 4.039 3.812 3.605 4.344 4.078 3.837 4.807 4.303 4.031 4.833 4.494 4.192 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 Period 20 18.048 18.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.822 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.800 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.048 11.925 9.779 | 8.244 7.105 6.233 5.548 4.997 8% 10% 12% 14% 0.926 0.909 0.893 0.877 1.859 1.833 1.783 1.736 1.690 1.647 16% 18% 20% Period 2 Period 3 Period 4 Period 5 Period 6 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.142 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 4% 5% 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 3.030 3.060 3.091 3.122 3.153 4.060 4.122 4.184 4.246 4.310 5.101 5.204 5.309 5.416 5.526 6.152 6.308 6.468 6.633 6.802 8.142 6% 8% 1.000 1.000 1.000 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 2060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.184 3.248 3.310 4.375 4.508 4.641 5.637 5.867 6.105 6.353 3.374 3.440 3.506 3.572 3.640 4.779 4.921 5.066 5.215 5.388 6.610 6.877 7.154 7.442 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.394 8.923 9.487 10.089 10.730 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 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 8.536 8.977 9.442 9.930 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 | 24.133 27.271 30.850 34.931 39.581 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 51.660 60.965 72.035 43.842 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 115.380 146.628 186.688 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 | 471.981 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 91.025 Print Done Print Done