Solve various time value of money scenarios.

Scenario 5. Assuming a 12 % interest rate, how much would Penelope have to invest now to be able to withdraw $11,000 at the end of every year for the next nine years? (Round your answer to the nearest whole dollar.)

Present Value = ______

Scenario 6. Aaron is considering a capital investment that costs $520,000 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 = ______

Scenario 7. What is the IRR of the capital investment described in Question 6?

Net Present Value (NPV) = ______

The IRR for the project is ______:

A. Between 8% and 10%

B. Between 10% and 12%

C. Between 12% and 14%

D. Between 14% and 16%

Reference Present Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% 8% | 10% | 12% | 14% | 16% | 18% | 20% 10.9900.9800.971 0.962 0.952 0.943 0.926 0.909 0.893 0.8770.862 0.8470.833 2 0.9800.961 0.9430.925 0.907 0.890 0.857 0.8260.797 0.769 0.7430.7180.694 3 0.971 0.942 0.915 0.8890.864 0.840 0.794 0.751 0.7120.675 0.6410.609 0.579 40.9610.9240.8880.8550.8230.7920.735 0.6830.6360.5920.552 0.516 0.482 50.9510.906 0.8630.822 0.7840.747 0.681 0.6210.5670.519 0.4760.4370.402 6 0.9420.888 0.837 0.790 0.746 0.705 0.630 0.5640.507 0.456 0.410 0.370 0.335 7 0.9330.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.3540.314 0.279 8 0.923 0.8530.7890.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.266 0.233 9 0.9140.837 0.7660.703 0.645 0.592 0.500 0.4240.3610.308 0.263 0.225 0.194 10 0.9050.820 0.7440.676 0.614 0.5580.463 0.3860.322 0.270 0.227 0.191 0.162 11 0.8960.8040.7220.6500.5850.527 0.429 0.350 0.287 0.2370.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.4970.3970.3190.257 0.208 0.168 0.1370.112 13 0.8790.773 0.6810.601 0.530 0.4690.368 0.290 0.2290.182 0.145 0.116 0.093 14 0.870 0.7580.6610.577 0.505 0.4420.340 0.2630.2050.1600.125 0.099 0.078 15 0.8610.7430.6420.555 0.481 0.417 0.315 0.2390.1830.140 0.108 0.084 0.065 20 0.8200.673 0.5540.4560.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.0590.0380.0240.016 0.010 30 0.7420.552 0.412 0.308 0.2310.1740.099 0.057 0.033 0.0200.012 0.007 0.004 400.6720.453 0.307 0.208 0.142 0.0970.046 0.022 0.011 0.005 0.003 0.001 0.001 Reference Present Value of Annuity of $1 4% | 5% | 6% | Periods 1% | 2% | 3% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 0.9900.9800.9710.9620.9520.9430.9260.9090.8930.877 0.8620.847 0.833 2 1.9701.9421.913 1.886 1.8591.833 1.7831.736 1.690 1.6471.605 1.5661.528 3 2.9412.8842.829 2.775 2.723 2.673 2.577 2.487 2.402 2.3222.2462.1742.106 43.902| 3.8083.717 3.6303.5463.4653.312 3.1703.037 2.914 2.7982.6902.589 54.8534.713 4.5804.452 4.329 4.2123.9933.7913.6053.4333.2743.127 2.991 65.7955.601 5.417 5.2425.0764.9174.6234.3554.111 3.8893.6853.4983.326 7 6.728 6.4726.2306.002 5.7865.5825.2064.8684.5644.2884.0393.8123.605 87.652 7.3257.0206.7336463 6.2105.7475.3354.9684.6394.3444.0783.837 98.566 8.1627.786 7.435 7.108 6.802 6.2475.7595.3284.9464.6074.3034.031 10 9.4718.9838.530 8.111 7.722 7.3606.710 6.1455.6505.2164.8334.4944.192 1110.3689.787 9.2538.760 8.306 7.887 7.139 6.4955.938 5.4535.029 4.656 4.327 12 11.255 10.575 9.9549.3858.8638.3847.5366.8146.1945.6605.1974.7934.439 13 12.134 11.348 10.635 9.9869.3948.853 7.9047.1036.4245.8425.3424.9104.533 14 13.004 12.106 11.296 10.5639.8999.2958.2447.367 6.628 6.0025.4685.0084.611 15 13.865 12.849 11.938 11.118 10.3809.712 8.5597.6066.811 6.142 5.5755.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.6235.9295.3534.870 25 22.023 19.52317.413 15.622 14.09412.783 10.6759.0777.8436.8736.0975.467 4.948 30 25.808 22.396 19.600 17.29215.372 13.765 11.2589.4278.0557.0036.1775.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.2447.1056.2335.5484.997 997 86 0848 63 02 06 69 31 2 2 56 78 10 25 85 37 11122 234 111 39 68974 39 8 47 9 02398 0595 5 01 72 5 67811 26 1-7 0611 683-7 686 81 48284 198 22334 5679 32 95 52327 68218 1963 8421 233 44567 001 542 4163 374 6 793 3 599 00141 29484 38277 7 0% 1 2 3 46 61 77 94 14 35 59 85 3 4 7 7 72 44 075 114 9 741 2 2 04128 9 91 82317 723 2 801 03866 07719 06609 36 051 67 025 7 569 91521 1631 0 44 5 01369 075 693 2 0012 69259 38 24791 4 96 6118 00011 22345 67891 0289 0-2346 0-2345 05 12345 6789 1 i Reference Future Value of Annuity of $1 5.5264.375324621001.000 14 5.6374.5063.3102120 Periods 12% 16% 20% 18% 1.000 1000.080 3310.7796610 1.000 1.000 1.000 1.000 1.000 1.000 1.000 4.921350621801.000 6610 5.066 3572 2200 6.877 5.86746413.3742140 6.353 101 41223091 2.040 5.309 2.020 2.010 2.200 3.060 3.440 3.640 4.310 5.204 7.442 5.416 7.154 6.308 6.152 6.802 8.142 7.716 6.633 6.975 8.115 8.536 8.977 9.442 7.214 9.48710.08910.730 11.414 12.142 12.916 9.89710.63711.436 12.30013.233 14.240 15.327 16.499 9.75510.159 10.58311.027 11.491 12.488 13.579 14.77616.085 17.519 19.08620.799 10.46210.950 11.464 12.006 2.57813.181 14.487 15.937 17.54919.33721.32123.521 25.959 7.434 7.662 7.898 8.923 8.286 8.583 8.892 9.214 9.549 9.369 11.567 12.169 12.808 13.486 14.20714.972 16.645 18.53120.655 23.045 25.733 28.755 32.150 12.68313.412 14.192 15.026 15.91716.870 18.977 21.38424.133 27.271 30.850 34.93139.581 13.80914.680 15.618 16.627 17.71318.882 21.495 24.52328.029 32.08936.786 42.219 48.497 14.947 15.974 17.086 18.292 19.59921.015 24.215 27.97532.39337.581 43.67250.81859.196 16.09717.293 18.599 20.024 21.57923.276 27.152 31.77237.28043.842 51.660 60.965 72.035 12 13 15 20 22.01924.29726.870 29.77833.06636.786 45.762 57.275 72.052 91.025 115.380 146.628186.688 28.24332.030 36.459 41.646 47.72754.865 73.106 98.347133.334181.871 249.214 342.603471.981 34.785 40.56847.575 56.085 66.43979.058 113.283164.494 241.333356.787530.312 790.9481,181.882 48.886 60.402 75.401 95.026 120.800 154.762259.057 442.593767.091 1,342.025 2,360.757 4,163.213 7,343.858 25 30 40 l her rs Year Net Cash Inflow $306,000 t 2 of e $204,000 $106,000 3 net cash inflows for three years. Using a hurd Net cash inflows for 3 years