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. Daniel just hit the jackpot in Las Vegas and won $40,000! If he invests it now, at a 10% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar.) Future value Scenario 2. Bob 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 12% 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 $2 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 15 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw Scenario 4. Cathy plans to invest $6,500 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 12% interest rate, how much would Vanna 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. Ray is considering a capital investment that costs $510,000 and will provide net cash inflows for three 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 6? The IRR is the interest rate at which the investment NPV = 0. We tried 10% in question 6, now we'll 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 IRR for the project is - More info 1. Daniel just hit the jackpot in Las Vegas and won $40,000! If he invests it now, at a 10% interest rate, how much will it be worth in 20 years? 2. Bob 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 12% interest rate to fund his retirement goal? 3. Assume that Nancy accumulates savings of $2 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 fifteen years? 4. Cathy plans to invest $6,500 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 12% interest rate, how much would Vanna have to invest now to be able to withdraw $13,000 at the end of every year for the next ten years? 6. Ray is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1 ... $302,000 Year 2 ... $198,000 Year 3 ... $100,000 Using a hurdle rate of 10%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Print Done Reference Present Value of $1 12% 14% 16% 18% 20% Periods 1% 2% 3% 4% 5% 6% 8% 10% Period 1 0.990 | 0.980 | 0.971 0.962 0.952 0.943 0.926 | 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 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 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 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 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 Period 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 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 10 Period 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 11 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 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 13 Period 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 14 Period 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 15 Period 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 20 Period 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 25 Period 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 30 Period 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 40 X Reference 20% 1.200 1.440 1.728 2.074 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 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 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 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 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 10 2.488 2.986 3.583 Period 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 11 Period 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 12 Period 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 13 Period 14 Period 15 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 Period 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 20 Period 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 25 Period 30 Period 40 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 93.051 188.884378.721750.3781,469.772 X Reference Present Value of Annuity of $1 8% 10% 12% 14% 16% 18% 0.926 0.909 0.893 20% 0.877 0.862 0.847 0.833 Periods 1% Period 1 0.990 Period 2 1.970 Period 3 2.941 4% 5% 6% 0.962 0.952 0.943 1.886 1.859 1.833 1.647 1.605 1.566 1.528 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 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 2% 3% 0.980 | 0.971 1.942 1.913 2.884 1.783 1.736 1.690 Period 4 3.902 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 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 3.837 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 4.031 Period 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10 Period 11 Period 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 12 Period 13 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 15 Period 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 20 Period 22.023 19.523 17.41315.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 25 Period 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 30 Period 32.835 27.35523.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 40 Print Done X Reference Future Value of Annuity of $1 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 14% 16% 18% Periods 1% 2% 3% 4% Period 1.000 1.000 1.000 1.000 20% 1.000 1.000 1.000 1.000 1 2.140 2.160 2.180 Period 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2 2.200 Period 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 3 4.921 5.066 5.215 5.368 Period 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 14 Period 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 9.930 16 8.977 9.442 11.414 12.142 12.916 Period 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 17 Period 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 8 Period 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 19 Period 10.46210.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 10 Period 11.567 12.169 12.80813.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 11 Period 12.68313.41214.19215.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 12 36.786 42.219 48.497 Period 13.80914.680 15.61816.627 17.713 18.882 21.495 24.523 28.029 32.089 13 43.672 50.818 59.196 Period 14.94715.97417.08618.292 19.599 21.015 24.215 27.975 32.393 37.581 14 Period 16.09717.29318.59920.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 15 Period 22.01924.29726.87029.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.68 120 Period 28.24332.03036.45941.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.98 25 Print Done X