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.) Rr. Scenario 1. Eddie just hit the jackpot in Las Vegas and won $65,000! 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. Alan would like to have $3,000,000 saved by the time he retires in 40 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? (Round your answer to the nearest whole dollar) Present value Scenario 3. Assume that Penny accumulates savings of $1 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. Ivana plans to invest $2,500 at the end of each year for the next seven years. Assuming a 12% 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 12% interest rate, how much would Sarah have to invest now to be able to withdraw $13,000 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 $530,000 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 Solve various time value of money scenarios. (Click the icon to view the scenarios.) (Click the icon to view the present value of $1 tab (Click the icon to view the future value of $1 table n 1 1 - dollar.) Future value 1. Eddie just hit the jackpot in Las Vegas and won $65,000! If he invests it now, at a 10% 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 40 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? 3. Assume that Penny accumulates savings of $1 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? ora 4. Ivana plans to invest $2,500 at the end of each year for the next seven years. Assuming a 12% interest rate, what will her investment be worth seven years from now? 5. Assuming a 12% interest rate, how much would Sarah have to invest now to be able to withdraw $13,000 at the end of every year for the next ten years? 6. Chuckie is considering a capital investment that costs $530,000 and will provide the following net cash inflows: Scenario 5. Assuming a 12% interest rate, how much und your answer to the nearest whole dollar.) Present value = he investment. (Round your answer to the nearest whole Scenario 6. Chuckie is considering a capital investme dollar. Use parentheses or a minus sign to represente Year Net Cash Inflow Net Present Value (NPV) = $298,000 Scenario 7. What is the IRR of the capital investment Year 1... Year 2 ... Year 3 ... $205.000 The IRR is the interest rate at which the investment NE a negative NPV.) $104,000 Jole dollar. Use parentheses or a minus sign to represent Using a hurdle rate of 8%, find the NPV of the investment. Net Present Value (NPV)
