Solve various time value of money scenarios, Scenario 1. Charlie just hit the jackpot in Las Vegas and won $70,000! 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. Forest would like to have $3,500,000 saved by the time he retires in 40 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 Stephanie 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. Bonnie plans to invest $3.500 at the end of each year for the next eight years. Assuming a 12% interest rate, what will her investment be worth eight years from now? (Round your answer to the nearest wholn dollar) Future value Scenario 5. Assuming a 12% interest rate, how much would Sarah have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? (Round your answe nearest whole dollar.) Present value Scenario 6. Darren 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 (Re 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 67 The IRR in 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 parentheirs or a minus sign to represent a negative NPV) Net Present Value (NPV) The IRR for the project is More info 4 of $1 1. Charlie just hit the jackpot in Las Vegas and won $70,000! If he invests it now, at a 10% interest rate, how much will it be worth in 20 years? 2. Forest would like to have $3,500,000 saved by the time he retires in 40 years. How much does he need to invest now at a 10% interest rate to fund his retirement goal? 3. Assume that Stephanie 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 twenty years? the end of ea ach y 5. Assuming a 12% interest rate, how much would Sarah have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? 4. Bonnie plans to invest $3,500 at the end of each year for the next eight years. Assuming a 12% interest rate, what will her investment be worth eight years from now? Round your a uld S 6. Darren is considering a capital investment that costs $510,000 and will provide the following net cash inflows. Year Net Cash Inflow Year 1 $296,000 at cos Year 2 Year 3 $204,000 $98,000 Using a hurdle rate of 10%, find the NPV of the investment answer to the hent. (Round y scribe 7. What is the IRR of the capital investment described in Question 6? = 0. Use parenthe Print Done Reference Present Value of $1 Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 0.907 6% 8% 0.952 0.943 0.926 0.857 0.890 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 10% 12% 14% 16% 18% 20% 0.909 0.893 0.877 0.862 0.847 0.833 0.826 0.797 0.769 0.743 0.718 0.694 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 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.592 0.552 0.516 0.482 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 Period 8 0.923 0.853 Period 9 0.914 Period 10 0.905 Period 11 0.896 Period 12 0.887 Period 13 0.879 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.789 0.731 0.677 0.627 0.837 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.558 0.400 0.354 0.540 0.467 0.404 0.351 0.305 0.500 0.424 0.361 0.308 0.263 0.225 0.463 0.386 0.322 0.270 0.227 0.191 0.314 0.279 0.266 0.233 0.194 0.162 0.722 0.650 Period 14 0.870 Period 15 0.861 0.804 0.788 0.701 0.625 0.557 0.497 0.773 0.681 0.601 0.530 0.469 0.758 0.661 0.577 0.505 0.442 0.743 0.642 0.555 0.481 0.417 0.585 0.527 Period 20 0.820 0.673 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.610 0.552 0.453 0.554 0.456 0.377 0.312 0.215 0.478 0.375 0.295 0.233 0.146 0.412 0.308 0.231 0.174 0.099 0.307 0.208 0.142 0.097 0.046 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.149 0.104 0.073 0.051 0.037 0.092 0.059 0.038 0.024 0.016 0.057 0.033 0.020 0.012 0.007 0.026 0.010 0.004 0.022 0.011 0.005 0.003 0.001 0.001 Reference Future Value of $1 Periods 1% 2% 3% 4% 5% Period 1 1.010 1.020 1.030 1.040 1.050 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 6% 8% 10% 12% 14% 16% 18% 1.060 1.080 1.100 1.120 1.140 1.160 1.180. 1.166 1.210 20% 1.200 Period 3 1.030 1.061 1.093 1.125 Period 4 1.041 1.082 1.126 1.170 Period 5 1.051 1.104 1.159 1.217 1.158 1.191 1.216 1.262 1.276 1.338 1.260 1.331 1.360 1.469 1.254 1.300 1.346 1.392 1.405 1.482 1.464 1.574 1.689 1.611 1.762 1.925 2.100 1.440 1.561 1.643 1.728 1.811 1.939 2.074 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 Period 7 1.072 1.149 1.230 1.243 1.268 1.384 1.539 1.426 1.601 1.340 1.419 1.587 1.772 1.974 2.195 1.316 1.407 1.504 1.714 1.949 2211 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 Period 10 1.105 1.219 1.344 1.480 1.791 2.159 2.594 3.106 Period 11 1.116 Period 12 1.127 2.436 2.700 2.986 2.502 2.826 3.185 3.583 2.853 3.278 3.759 4.300 3.252 3.803 4.435 1.629 1791 21 5.160 3.707 4.411 5.234 6.192 2.853 3.138 Period 13 1.138 1.294 1.469 1.665 Period 14 1.149 1.319 1.513 1.732 Period 15 1.161 1.346 1.558 1.801 Period 20 1.220 1.486 1.806 Period 25 1.282 1.641 Period 30 1.348 1.811 Period 40 1.489 2.208 2.191 2.094 2.666 2.427 3.243 3.262 4.801 1.710 1.898 2.332 3.479 4.226 5.117 6.176 1.796 2012 2.518 3.896 4.818 5.936 7.288 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 2.653 3.207 4.661 6,727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 4.322 5.743 10.063 17.449 29.960 50 950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 7.430 8.916 10.699 12.839- 15.407 Reference Present Value of Annuity of $1 Periods 1% Period 1 0.990 Period 2 1.970 Period 3 2.941 Period 4 3.902 Period 5 4.853 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 2% 3% 4% 0.980 0.971 0.962 1.942 1.913 1.886 2.884 2.829 2.775 3.808 3.717 3.630 4.713 4.580 4.452 5% 6% 8% 10% 12% 14% 16% 18% 0.952 0.943 0.926 0.909 0.893 0.877 20% 0.862 0.847 0.833 5.601 5.417 5.242 5.076 4.917 6.472 6.230 6.002 5.786 5.582 1.859 1.833 1.783 1.736 1.690) 2.723 2.673 2.577 2.487 2.402 3.546 3.465 3.312 3.170 3.037 4.329 4.212 3.993 3.791 3.605 4.623 4.355 4.111 5.206 4.868 4.564 1.647 1.605 1.566 1.528 2.322 2.246 2.174 2.106 2.914 3.433 2.798 2.690 2.589- 3.274 3.127 2.991 3.889 3.685 3.498 4.288 4.039 3.326 3.812 3.605 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 15 13.865 Period 20 18.046 8.162 7.786 7.435 6.247 5.759 5.328 8.983 8.530 8.111 6.710 6.145 5.650 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22 023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 7.108 6.802 4.946 4.607 4.303 4.031 7.722 7.360 5.216 4.833 4.494 4.192 5.453 5.029 5.660 5.197 4.793 5.842 5.342 4.910 4.533 6.002 5:468 5.008 4.611 6.142 5.575 5.092 4.675 4.656 4.327 4.439 6.623 5.929 5.353 4.870 6.873 6.097 8.055 7.003 5.467 4.948 6.177 5.517 4.979 8.244 7.105 6.233 5.548 4.997 Print Done Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% Period 1 1.000 1.000 1.000 1.000 6% 1.000 1.000 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1,000 1,000 Period 2 2.010 2.020 2.030 2.040 2.050 Period 3 3.030 3.060 3.091 3.122 3.153 2.060 3.184 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 Period 5 5.101 5.204 5.309 5.416 4.310 5.526 4.375 4.506 4.641 4.779 5.637 5.867 6.105 4.921 5,066 5.215 5.368 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7.434 7.662 7.898 Period 8 8.286 8.583 8.892 9.214 Period 9 9.369 9.755 10.159 10.583 Period 10 10.462 10.950 11.464 12.006 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 11 027 11 491 12 488 13.579 14.776 16.085 17.519 19.086 20.799 12.578 13.181 14.487 15.937 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 20.655 23.045 25.733 28.755 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 Period 13 Period 14 Period 15 13.809 14.680 15.618 16.627 17.713 14.947 15.974 17.086 18.292 19.599 16.097 17.293 18.599 20.024 21.579 Period 20 Period 25 18.977 21.384 24.133 18.882 21.495 24.523 28.029 21.015 24.215 27.975 32.393 23.276 27 152 31.772 37.280 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 16.870 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 249.214 342 603 471.981 Period 30 790.948 34.785 40 568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343 858 1,181 882 Print Done -X olve 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.) Present value Scenario 3. Assume that Stephanie accumulates savings of $1.5 million by the time she retires. If she invests this savings at 10%, how much mo nearest whole dollar and enter as a positive amount.) Amount able to withdraw = Scenario 4. Bonnie plans to invest $3,500 at the end of each year for the next eight years. A Future value her investment Year Year 1 Scenario 5. Assuming a 12% interest rate, how much would Sarah have to invest now to be Year 2 Present value Year 3... Net Cash Inflow $296,000 $204,000 $98,000 very year for the Scenario 6. Darren is considering a capital investment that costs $510,000 and will provide het cash inflows fo parentheses or a minus sign to represent a negative NPV) S for three years Using a hurdle rate of 1 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 ans Net Present Value (NPV) The IRR for the project is Rain coming