Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $7.750 per year at the end of each of the next seven years 2. $50,100 (lump sum) now 3. $99,850 (lump sum) seven years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Present Value Scenario 1: Scenario 2: Scenario 3: appears to be the best option. Based on an 8% interest rate, its present value is the Requirement 2. Would your preference change if you used a 12% discount rate? Compute the present value of each scenario using a 12% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar) Present Value Scenario 1: Cronarin Enter any number in the edit fields and then continue to the next question. Reference od 50 Present Value of $1 ok Periods 1 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 2 3 4 5 15% 0.870 0.756 0.658 0.572 10% 0.909 0.826 0.751 0.683 0.621 em I pl 9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.497 0.564 6 7 8 9 10 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.585 0.557 0.530 0.505 0.481 0.458 0.436 0.416 0.396 0.377 ario 1% 2% 3% 0.990 0.980 0.971 0.980 0.961 0.943 0.971 0.942 0.915 0.961 0.924 0.888 0.951 0.906 0.863 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 0.896 0.804 0.722 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.861 0.743 0.642 0.853 0.728 0.623 0.844 0.714 0.605 0.836 0.700 0.587 0.828 0.686 0.570 0.820 0.673 0.554 0.811 0.660 0.538 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0.494 0.475 0.456 0.432 0.376 0.327 0.284 0.247 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 0.394 0.371 0.350 0.331 0.312 0.294 ario 1 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.666 0.623 0.582 0.544 0.508 0.475 0.444 0.415 0.388 0.362 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.513 0.467 0.424 0.386 0.350 0.319 0290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.135 ario 11 12 13 14 15 0.388 0.356 0.326 0.299 0.275 0.215 0.187 0.163 0.141 0.123 uirem mpute le doll 16 17 18 19 20 0.339 0.317 0.296 0.277 0.258 0.242 0.252 0.231 0.212 0.194 0.178 0.164 0.163 0.146 0.130 0.116 0.104 0.093 0.123 0.108 0.095 0.083 0.073 0.064 0.107 0.093 0.081 0.070 0.061 0.053 0.071 0.060 0.051 0.043 0.037 0.054 0.045 0.038 0.031 0.026 0.022 enario 0.439 0.359 21 0.199 0.044 0.031 anarin cer any Print Done Reference rand "50 100 ,850 Click TU 0.405 0.422 U.300 U.SZZ UZTU the 11 12 13 14 15 V.500 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.388 0.356 0.326 0.299 0.275 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 irem halpl 16 17 18 19 20 0.339 0.317 0.296 0.277 0.258 0.218 0.198 0.180 0.164 0.149 hario nario V.905 U.OZU U.14 0.010 V.014 V.550 0.896 0.804 0.722 0.650 0.585 0.527 0.887 0.788 0.701 0.625 0.557 0.497 0.879 0.773 0.681 0.601 0.530 0.469 0.870 0.758 0.661 0.577 0.505 0.442 0.861 0.743 0.642 0.555 0.481 0.417 0.853 0.728 0.623 0.534 0.458 0.394 0.844 0.714 0.605 0.513 0.436 0.371 0.836 0.700 0.587 0.494 0.416 0.350 0.828 0.686 0.570 0.475 0.396 0.331 0.820 0.673 0.554 0.456 0.377 0.312 0.811 0.660 0.538 0.439 0.359 0.294 0.803 0.647 0.522 0.422 0.342 0.278 0.795 0.634 0.507 0.406 0.326 0.262 0.788 0.622 0.492 0.390 0.310 0.247 0.780 0.610 0.478 0.375 0.295 0.233 0.772 0.598 0.464 0.361 0.281 0.220 0.764 0.586 0.450 0.347 0.268 0.207 0.757 0.574 0.437 0.333 0.255 0.196 0.749 0.563 0.424 0.321 0.243 0.185 0.742 0.552 0.412 0.308 0231 0.174 0.672 0.453 0.307 0.208 0.1420.097 0.608 0.372 0.228 0.141 0.087 0.054 21 22 23 24 25 mario 0.292 0.270 0.250 0.232 0.215 0.199 0.184 0.170 0.158 0.146 0.135 0.125 0.116 0.107 0.099 0.252 0.231 0.212 0.194 0.178 0.164 0.150 0.138 0.126 0.116 0.106 0.098 0.090 0.082 0.075 0.032 0.242 0.226 0.211 0.197 0.184 0.172 0.161 0.150 0.141 0.131 0.067 0.034 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.064 0.056 0.049 0.043 0.038 0.033 0.029 0.026 0.022 0.020 0.005 0.001 0.163 0.146 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 0.053 0.047 0.042 0.037 0.033 0.011 0.003 U.247 UZZI U.TYT U.TOZ 0.215 0.195 0.162 0.135 0.187 0.168 0.137 0.112 0.163 0.145 0.116 0.093 0.141 0.125 0.099 0.078 0.123 0.108 0.084 0.065 0.107 0.093 0.071 0.054 0.093 0.080 0.060 0.045 0.081 0.069 0.051 0.038 0.070 0.060 0.043 0.031 0.061 0.051 0.037 0.026 0.053 0.044 0.031 0.022 0.046 0.038 0.026 0.018 0.040 0.033 0.022 0.015 0.035 0.028 0.019 0.013 0.030 0.024 0.016 0.010 0.026 0.021 0.014 0.009 0.023 0.018 0.0110.007 0.020 0.016 0.010 0.006 0.017 0.014 0.008 0.005 0.015 0.012 0.007 0.004 0.0040.003 0.001 0.001 0.001 0.001 0.135 0.123 0.112 0.102 0.092 0.084 0.076 0.069 0.063 0.057 0.022 quirem 26 27 28 29 30 40 50 BE mpute ole doll cenario anarin 0.046 0.021 0.013 0.009 ter any Print Done Reference Periods 1 2 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2914 3.433 15% 0.870 1.626 2.283 2.855 3.352 16% 0.862 1.605 2 246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 4 5 6 7 8 9 10 Present Value of Ordinary Annuity of $1 1% 2% 3% 5% 6% 7% 8% 9% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 3.902 3.806 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 11 255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 12.134 11.348 10.6359.986 9.394 8.853 8.358 7.904 7.487 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8,061 7.606 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 U 11 12 13 14 15 3.784 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.724 5.847 5.954 6.047 6.128 6.198 6.259 4.656 4.793 4.910 5.008 5.092 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.669 5.749 5.818 5.877 5.929 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7250 7.366 7.469 4.327 4.439 4.533 4.611 4.675 5,453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 em te doll 16 17 18 19 20 21 5.162 5.222 5.273 5.316 5.353 5.384 4.730 4.775 4.812 4.844 4.870 rio 7.562 6.687 6.312 5.973 4.891 rin ny Print Done Reference TU 9.471 0.903 0.330 O.IT 7.TZZ 7.300 7.024 0.7 IU 0.410 0.143 2.030 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 16 14.718 13.578 12.561 11.652 10.838 10.1069.447 8.851 8.313 7.824 6.974 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 18 16.398 14.992 13.754 12.659 11.690 10.828 10.0599.372 8.756 8.201 7.250 19 17.226 15.678 14.32413.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 | 9.818 9.129 8.514 7.469 21 18.857 17.011 15.415 14.029 12.821 11.764 836 10.017 9.292 8.6497.562 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 23 20.45618.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 25 22.023 19.523 17.41315.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 26 22.795 20.12117.877 15.983 14.375 13.003 11.826 10.810 9.929 9.1617.896 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 28 24.316 21.28118.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 29 25.066 21.844 19.188 16.984 15.141 13.591 12 278 11.158 10.1989.370 8.022 30 25.80B 22 396 19.600 17.292 15.372 13.765 12.409 11.258 10.2749.427 8.055 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.7798.244 50 39.196 31.424 25.730 21482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 3.210 JUNY 4.033 4.444 4.142 5.453 5.234 5.029 4.656 4.327 5.660 5.421 5.197 4.793 4.439 5.842 5.583 5.342 4.910 4.533 6.002 5.724 5.468 5.008 4.611 6.142 5.847 5.575 5.092 4.675 6.265 5.954 5.669 5.162 4.730 6.373 6.047 5.749 5.222 4.775 6.467 6.128 5.818 5.273 4.812 6.550 6.198 5.877 5.316 4.844 6.623 6.259 5.929 5.353 4.870 6.687 6.312 5.973 5.384 4.891 6.743 6.359 6.011 5.410 4.909 6.792 6.399 6.044 5.432 4.925 6.835 6.434 6.073 5.451 4.937 6.873 6.464 6.097 5.467 6.906 6.491 6.118 5.480 4.956 6.935 6.514 6.136 5.492 4.964 6.961 6.534 6.152 5.502 4.970 6.983 6.551 6.166 5.510 4.975 7.003 6.566 6.177 5.517 4.979 7.105 6.642 6.233 5.548 4.997 7.133 6.661 6.246 5.554 4.999 4.948 am te doll ario srin 1 Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $7,750 per year at the end of each of the next seven years 2. $50,100 (lump sum) now 3. $99,850 (lump sum) seven years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Scenario 1: Scenario 2: Scenario 3: appears to be the best option. Based on an 8% interest rate, its present value is the Requirement 2. Would your preference change if you used a 12% discount rate? Compute the present value of each scenario using a 12% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar) Present Value Scenario 1: Scenario 2: Scenario 3: appears to be the best option. Based on a 12% Interest rate, its present value is the Enter any number in the edit fields and then continue to the next