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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.)
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. Ben just hit the jackpot in Las Vegas and won $50,000! 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 S Scenario 2. Inman would like to have $2,000,000 saved by the time he retires in 30 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal? 482315 (Round your answer to the nearest whole dollar.) Present value$ Scenario 3, Assume that Zoey accumulates savings of $1.5 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for 20 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw -$ Scenario 4" Faith plans to invest $4,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? (Round your answer to the nearest whole dollar.) Future value$ Scenario 5" Assuming a 12% interest rate, how much would Amanda have to invest now to be able to withdraw $10,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.) Present value $ Scenario 6. Earl is considering a capital investment that costs $525,000 and will provide net cash inflows for three years using a hurdle rate of 8%, find the NPV of the investment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV)$ 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 Reference Present Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 10.990 0.980 0.971 0.962 0.952 0.9430.9260.9090.893|0.877 0.862 0.8470.833 2 0.9800.9610.943 0.925 0.9070.890 0.857 0.8260.7970.7690.743 0.7180.694 3 0.971 0.9420.915 0.889 0.8640.840 0.7940.751 0.712 0.675 0.641 0.609 0.579 40.961 0.9240.888 0.855 0.8230.792 0.735 0.683 0.636 0.5920.552 0.516 0.482 50.951 0.906 0.863 0.822 0.784 0.7470.681 0.621 0.567 0.5190.4760.4370.402 6 0.9420.888 0.837 0.7900.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.5830.513 0.452 0.400 0.3540.314 0.279 8 0.923 0.8530.7890.731 0.6770.6270.540 0.4670.4040.3510.3050.266 0.233 9 0.914 0.837 0.7660.703 0.645 0.592 0.500 0.4240.361 0.308 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 110.8960.804 0.722 0.6500.5850.527 0.4290.350 0.2870.2370.1950.162 0.135 12 0.887 0.7880.701 0.625 0.557 0.4970.3970.319 0.257 0.208 0.168 0.1370.112 13 0.879 0.773 0.681 0.601 0.530 0.4690.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.7580.661 0.577 0.5050.442 0.340 0.263 0.2050.1600.1250.0990.078 15 0.8610.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.1080.084 0.065 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 250.780 0.610 0.4780.3750.2950.233 0.1460.0920.0590.038 0.0240.016 0.010 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.0070.004 400.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 PrintDone %|0 0 2 4 8 68062 36990 89 // 684 33 025 0-24704 95311 49 11122 23456 78 6 74 39 '1 '8 47 9 78 5 8-1 3 6 9 2 71742 125 1-1 1 1 1 2 23345 678 01 72 11 264 6%-60 46 001 11 100 400 8 2 8 4 17 996 86 88 200 001 spa 350 zzi 675 1-1 1 1 1 2 22334 55679 19 00295 52327 68218 550 749 6 22233 44567 001 7 12457 92471 48384 223 33445 9 17 599 0 12346 79135 81471 7 3 114 9 741 0 0 89 0 1 2 3 4 2 I 35791 2 04128 9 91 82317 723 %629 2 11 12222 345 10 801 3866 0771 609 36 9 0 02507 5693 48271 61 00112 23344 6 6 3 2 2 2 11122 445 9 2 0 12345 0500 12345 6789 Reference Present Value of Annuity of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 1 0.9900.9800.971 0.9620.952 0.943 0.9260.909 0.893 0.877 0.862 0.8470.833 2 1.970 1.9421.913 1.8861.8591.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 3 2.941 2.884 2.829 2.775 2.723 2.673 2.5772.487 2.402 2.322 2.246 2.174 2.106 43.902 3.808 3.717 3.6303.5463.4653.312 3.170 3.0372.9142.7982.6902.589 54.853 4.713 4.5804.452 4.3294.212 3.9933.791 3.605 3.4333.2743.1272.991 6 5.7955.601 5.4175.242 5.076 4.917 4.623 4.3554.111 3.889 3.685 3.498 3.326 7 6.7286.472 6.230 6.002 5.786 5.582 5.206 4.868 4.5644.288 4.039 3.812 3.605 8 7.6527.325 7.020 6.7336.463 6.2105.7475.3354.9684.6394.3444.078 3.837 98.566 8.162 7.7867.435 7.108 6.8026.2475.7595.328 4.9464.6074.303 4.031 10 9.4718.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.2164.8334.4944.192 1110.368 9.787 9.253 8.760 8.306 7.887 7.139 6.4955.938 5.453 5.029 4.656 4.327 12 11.255 10.5759.9549.3858.8638.3847.536 6.8146.1945.6605.1974.7934.439 13 12.134 11.348 10.6359.9869.3948.8537.9047.103 6.424 5.8425.3424.9104.533 14 13.004 12.106 11.296 10.563 9.899 9.295 8.2447.367 6.628 6.002 5.4685.008 4.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.5597.606 6.811 6.1425.575 5.0924.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.469 6.6235.9295.3534.870 25 22.023 19.523 17.413 15.622 14.09412.783 10.675 9.077 7.8436.8736.0975.4674.948 30 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.427 8.055 7.003 6.177 5.5174.979 4032.835 27.355 23.115 19.79317.15915.046 11.925 9.7798.2447.105 6.233 5.548 4.997 Print Done Reference Future Value of Annuity of $1 Periods 2% 1.000 2.020 3.0303.060 3.091 5% 1.000 2.050 20% 1.000 2.200 3.640 5.368 7.442 9.930 9.487 10.08910.730 11414 12.14212.916 . 10.63711.436 2.300 13.23314.240 5.327 16.499 10% 1.000 2.100 14% 1.000 2.140 3.440 4.7794.921 6.610 18% 1.000 2.180 3.572 5.215 7.154 12% 1.000 2.120 3.122 3.1533.184 3.246 3.310 3.374 6% 1.000 2.060 16% 1.000 1.000 2.010 1.000 2.0302.040 1.000 1.000 2.080 3.506 5.066 6.877 8.977 4.060 4.122 4.184 4.246 4.3104.375 4.506 4.641 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.152 6.308 6.468 6.633 6.802 6.9757.336 7.716 7.214 8.286 8.115 8.536 9.442 7.662 7.898 9.214 7.434 8.583 8.142 9.549 8.394 9.897 8.923 8.892 9.3699.75510.159 10.583 11.027 11.491 12.488 13.57914.776 16.085 17.519 9.08620.799 10.4620.9501146412.006 12.578 13.181 14.487 15.937 17.549 .33721.32123.521 25.959 11.56712.16912.808 13.48614.207 14.972 16.645 18.53120.655 23.045 25.73328.755 32.150 12.68313.41214.192 15.026 15.917 16.87018.97721.384 24.133 27.27130.85034.931 39.581 13.80914.6805.618 16.627 17.71318.882 21.495 24.523 28.029 32.08936.786 42.21948.497 4.9475.974 17.086 18.29219.599 21.015 24.215 27.97532.393 37.581 43.67250.818 59.196 16.09717.293 18.599 20.02421.579 23.276 27.152 31.77237.280 43.842 51.66060.965 72.035 22.019 24.29726.870 29.77833.06636.786 45.762 57.275 72.05291.025 115.380 146.628186.688 28.24332.030 36.459 41.64647.727 54.865 73.106 98.347133.334 181.871 249.214342.603 471.981 34.785 40.568 47.575 56.08566.439 79.058 113.283 164.494241.333 356.787530.312790.948 1.181.882 48.886 60.40275.401 95.026 120.800 154.762 259.057442.593767.091 1,342.025 2,360.757 4,163.213 7,343.858 10 12 13 14 20 25 30 40 Print Done Year Net Cash Inflow $306,000 $204,000 $96,000 2
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