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) 3 3 (Click the icon to view the present value of annuity of S1 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 $70,000! If he invests it now at a 12% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dollar) Future value - Scenario 2. Inman would lice to have $3,500,000 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 10%, 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. Faith plans to invest $6,000 at the end of each year for the next eight years. Assuming a 14% 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 Rebecca have to invest now to be able to withdraw $15,000 at the end of every year for the next nine 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 nel 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 representa 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, 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.) Nat Present Valua (NPV) ESC A More Info 1. Daniel just hit the jackpot in Las Vegas and won $70,000! If he invests it now at a 12% interest rate, how much will it be worth in 20 years? 2. Inman would like to have $3,500,000 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 10%, how much money will she be able to withdraw at the end of each year for 20 years? 4. Faith plans to invest $6,000 at the end of each year for the next eight years. Assuming a 14% interest rate, what will her investment be worth eight years from now? 5. Assuming a 6% interest rate, how much would Rebecca have to invest now to be able to withdraw $15,000 at the end of every year for the next nine years? 6. Ray is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Net Cash Inflow 1........ $304,000 $204,000 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
