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 present value of annuity of $1 table.) (Click the icon to view the future value 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 $25,0001 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.) mis Scenario 2. Donald 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 doliar.) = Scenario 3. Assume that Vivian 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 15 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw m Scenario 4. Ivana plans to invest $6,500 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 10% interest rate, how much would Marisa have to invest now to be able to withdraw $12,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar.) = Scenario 6. Darren is considering a capital investment that costs $535,000 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 well 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. Daniel just hit the jackpot in Las Vegas and won $25,000 ! If he invests it now, at a 14% interest rate, how much will it be worth in 15 years? 2. Donald 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 Vivian 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 fifteen years? 4. Ivana plans to invest $6,500 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 10% interest rate, how much would Marisa have to invest now to be able to withdraw $12,000 at the end of every year for the next ten years? 6. Darren is considering a capital investment that costs $535,000 and will provide the following net cash inflows: 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 Reference Reference Reference
