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Using a 6% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Which scenario yields the highest present
Using a 6% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Which scenario yields the highest present value? appears to be the best option. Based on a 6% interest rate, its present value is the Using a 12% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Present value of Scenario 1 Present value of Scenario 2 Present value of Scenario 3 appears $ be the best option. Based on a 12% interest rate, its present value is the Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose): 1. $8,000 a year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $98,150 (lump sum) eight years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table.) Present Value of Annuity of $1 Droeant Valo af nnuitu nf $1 Future Value of Annuity of $1 Present Value of $1 Future Value of $1
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