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.) 9 (Click the icon to view the present value of annuity of $1 table.) 9 (Click the icon to view the future value of annuity of $1 table.) C Scenario 1. Charlie just hit the jackpot in Las Vegas and won $45,000! If he invests it now, at a 14% 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 $2,000,000 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 Ramona accumulates savings of $1 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 neare Amount able to withdraw Scenario 4. Jessica plans to invest $2,500 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? (Round your answer to the nearest whole dollar.) Future value Scenario 5. Assuming a 12% interest rate, how much would Amanda have to invest now to be able to withdraw $14,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value Scenario 6. Michael is considering a capital investment that costs $520,000 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 parenth 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 between 6% and 8% between 8% and 10% between 10% and 12% between 12% and 14% More Info 1. Charlie just hit the jackpot in Las Vegas and won $45,000! If he invests it now, at a 14% interest rate, how much will it be worth in 15 years? 2. Alan would like to have $2,000,000 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 Ramona accumulates savings of $1 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 $2,500 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 12% interest rate, how much would Amanda have to invest now to be able to withdraw $14,000 at the end of every year for the next nine years? 6. Michael is considering a capital investment that costs $520,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1 ... $300,000 Year 2 $196,000 Year 3 $106,000 Using a hurdle rate of 8%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question B? st whole dollar and enter as a positive amount.) eses or a minus sign to represent a negative NPV. x Reference Reference Present Value of 51 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.980 0.9740.962 0.9520.94 0.9260.9090.893 0.877 0.8620.847 0.833 Period 20.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.7430.7180.694 Period 30.971 0.942 0.915 0.889 0.884 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 40.961 0.9240.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.55205160482 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 Period 60.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.7110.665 0.583 0.513 0.452 0.400 0.3540.3140 279 Period 80.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.3510.306 0.2680.233 Period 90.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0225 0.194 Period 10 0.905 0.820 0.7440.676 0.614 0.558 0463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.804 0.722 0.650 0.585 0.5270429 0.350 0.287 0237 0.1950.162 0.135 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 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.750 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.542 0.565 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.0840.065 Period 200.820 0.673 0.554 0.466 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.2950 233 0.146 0.092 0.0590.038 0.024 0.0160.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.1740.099 0.057 0.033 0.0200.012 0.007 0.004 Period 40 0.672 0459 0.307 0.208 0.142 0.097 0.045 0.022 0.0110.005 0.003 0.001 0.001 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090.893 0.877 0.8620.847 0.833 Period 2 1.970 1942 1943 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.941 288428292.775 2.723 2.673 2.577 2487 2402 2.322 2246 2.174 2.106 Period 3.902 3.808 3.717 3.630 3.5483.465 3.312 3.1703.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4452 4.329 | 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 5.795 5.601 5.417 5.2425.0764.917 4.6234355 4111 3.8893685 3.498 3.326 Period 7 6.728 6.47262306.0025.786 5.5825.20648684.564 4.288 40393.812 3.605 Period 7.652 7.3257.020 6.733 6.483 6.210 5.7475.335 4.968 4.6394344 4.078 3.837 Period 9 8.5668.1627.788 7.435 7.108 6.8026.247 5.759 5.328 4.946 | 4.607 4.303 4.303 4.031 Period 10 9.471 8.933 8.530 8.1117.722 7.360 6.710 6.145 5.650 5.216 4833 44944192 Period 11 10.368 9.7879.2538.760 8.308 7.897 7.139 6.495 5.938 5.453 5.029 4656 4.327 Period 12 11.255 10.575 9.9549.3858.8638.384 7.5366.814 6.194 5.6605.1974.7934439 Period 13 12.13411.348 10.6359.9869.3948.853 7.904 7.103 6.424 5.84253424.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.2958.244 7.367 6.628 6.002 5468 5.000 4.611 Period 15 13.86512849 11.938 11.11810.380 9.7128.5597.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5929 5.353 4.870 Period 25 22.023 19.52317.41315.622 14.09412.783 10.675 9.077 7.843 6.8736.097 5.467 4.948 Period 30 25.8082239619.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.1775.517 4.979 Period 40 32 835 27355 23.115 19.793 17.15915046 11.925 9.7798.244 7.105 6233 5.548 4.997 Reference Reference Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 period 40 Future Value of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18%20% 1.010 1.020 1.000 1.040 1.050 1.060 1.000 1.100 1.120 1.140 1.160 1.180 1200 1.020 1.040 1.061 1.0821.103 1.124 1.1661.210 1.254 1.300 1.346 1.392 1440 1.030 1.061 1.090 1.125 1.1581.191 1260 1.260 1331 1405 1.482 1.561 1.643 1.728 1.041 1.0821.126 1.170 1216 1.262 1.360 1.484 1.574 1689 1.811 1.939 2.074 1.0511.104 1.15912171276 1.338 1.469 1.611 1.782 1.925 2.100 2.1002288 2.480 1.062 1.126 1.194 1.265 1.340 1419 1.587 1.772 1.974 2195 2.436 2.700 2986 1.072 1.149 1.230 1.316 1407 1.504 1.714 1.949 2211 2.502 2.826 2.826 3.185 3.583 1.083 1.1721.257 1.369 1477 1.594 1.851 2144 2.478 2853 3.278 3.759 4.300 1.094 1.195 1.305 1423 1.551 1.689 1.999 2358 27733.252 3.8034435 5.160 1.105 1.219 1.344 1.480 1 1.629 1.791 2.159 2594 3.106 3.707 4.411 5.234 6.192 1.116124313841.539 1.710 1.898 2.382 2853 3.4794228 5.1176.176 7.430 1.1271.268 1.426 1.601 1.796 2.012 2.5183.138 3.896 4.818 5.9367288 8.916 1.1381.2941.469 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.4926.8868.509 10.699 1.149 1.319 1.513 1.732 1.980 2261 29373.797 4.887 62617.988 10.147 12839 1.1611346 1.346 1.558 1.801 2079 2.397 3.172 4.177 4.177 5.474 7.1389.266 11.974 15.407 1.220 1 486 1.806 2.191 2653 3.207 4.661 6.727 9.646 13.743 19.461 27393 38.338 128216412094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95,396 1.348 1.8112427 3243 4322 5.743 10.063 17.449 29.960 50.95085850 143,371 237.37 14892 2083 2624801 4.B017.040 10.286 21.725 4525993.061188 884 378.721750,3781489.77 Future Value of Annuity of 51 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2010 2020 2030 2040 2050 2.060 2060 20602.100 2.120 2.140 2160 2.180 2 200 Period 3 3.030 3.060 3.091 3.122 3.122 3.153 3.1533.1843.2463.310 3.374 3.440 3506 3.572 3.640 Period 4 4.060 4.122 4.184 4246 4.3104.375 4.506 4641 4779 4.921 5.066 5215 5.368 Period 5 5.101 52045.309 5.446 5.526 5.6375.867 6.10 6.363 6.610 6.877 7.154 7.442 Period 6.152 6.308 6.468 6.633 6.8026.9757.3367.7168.115 8.536 8.977 9.442 9.930 Period 7 721474347.6627.898 8.142 8.394 8.9239.487 10.089 10.730 11.414 12.142 12.916 Period 8 82868.5838.8929.2149.549 9.897 10.637 11.438 12300 13.233 14240 15.327 16.499 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.778 16.085 17.519 19.086 20.799 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.48715.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.666 23.045 25.733 28.756 32.150 Period 12 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 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42219 48 497 Period 14 14.94715.974 17.086 18.292 19.599 21.015 24 215 27.97532393 37.581 43.672 50.818 59.196 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72,035 Period 20 22019 24.297 26.870 29.77833066 36.786 45.762 57.27572062 91.025 115.380146 628 146.628186688 Period 25 28.243 32.03036.459 41.646 | 47.727 54.865 73.106 98.347 133 334 181.871 249 214342.603 471.981 Period 30 34.785 40.568 47.57556.085 66.439 79.058 113.283 164 494 241.333 366.787 530.312790.948 1.181.882 Period 40 48.888 60.402 75.401 95.026120.800 154.762 259.057 442.593767.091 1,342.025 2.360.757 4.163 2137.343.858 Print Done Print Done Done