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. $8,550 per year at the end of each of the next eight years 2. $50,050 (ump sum) now 3. $100,250 (lump sum) eight years from now (Cack the icon to view Present Value of $1 table) Read the requirements (Click the icon to view Present Value of Ordinary Annuity of $1 table) Requirement 1. Calculate the present value of each scenano using a 6% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, XXXXX Round the present value to the nearest whole dollar) Scenano 1,6% discount rate, Present value 13 1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value? Round to the nearest whole dollar. 2. Would your preference change if you used a 12% discount rate? Requirements Present Value of $1 Periods Period 1 1% 2% 3% 4% 5% 6% 7% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 Period 3 0.971 Period 4 0.961 Period 5 0.951 0.942 0.915 0.889 0.864 0.840 0.924 0.888 0.855 0.823 0.792 0.906 0.863 0.822 0.784 0.747 0.713 9% 10% 12% 0.926 0.917 0.909 0.893 0.873 0.857 0.842 0.826 0.797 0.816 0.794 0.772 0.751 0.712 0.763 0.735 0.708 0.683 0.636 0.681 0.650 0.621 0.567 14% Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 Period 9 Period 10 0.914 0.837 0.766 0.905 0.820 0.744 0.703 0.645 0.592 0.544 0.500 0.676 0.614 0.558 0508 0.463 0.596 0.564 0.507 0,583 0.547 0.513 0.452 0.540 0.502 0.467 0.404 0.460 0.424 0.361 0.422 0.386 0.322 Period 11 0.896 0.804 0.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 Period 14 0.870 0.758 Period 15 0.861 0.743 0.642 0.555 0.481 0.527 0475 0.429 0.497 0.444 0.397 0.681 0.601 0.530 0.469 0.415 0.368 0.661 0.577 0.505 0.442 0.388 0.340 0.417 0.362 0.315 Period 16 0.853 0.728 0.623 0.534 0.458 Period 17 0.844 0.714 0.605 0.513 0.436 Period 18 0.836 0.700 0.587 0.494 0.416 Period 19 0.828 0.686 0.570 0.475 0.396 0.394 0.339 0.292 0.371 0.317 0.270 0.350 0.331 0.296 0.250 0.277 0.232 0.231 0.198 0.146 0.212 0.180 0.130 0.194 0.164 0.116 15% 16% 18% 20% 0.877 0.870 0.862 0.847 0.833 0.769 0.756 0.743 0.718 0.694 0.675 0.658 0.641 0.609 0.579 0.592 0.572 0.552 0.516 0.482 0.519 0.497 0476 0.437 0.402 0456 0.432 0.410 0.370 0.335 0.400 0.376 0.354 0.314 0.279 0351 0.327 0.305 0.266 0.233 0.308 0.284 0.263 0.225 0.194 0.270 0.247 0.227 0.191 0.162 0388 0.350 0287 0237 0.215 0.195 0.162 0.135 0356 0.319 0257 0208 0.187 0.168 0.137 0.112 0.229 0182 0.163 0.145 0.116 0.093 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.108 0.093 0.080 0.060 0.045. 0.095 0.081 0.069 0.051 0.038 0.083 0.070 0.060 0.043 0.031 0326 0.290 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 Period 21 0.811 0.660 0.538 0.439 0.359 Period 22 0.803 0.647 0.522 0.422 0.342 Period 23 0.795 0.634 0.507 0.406 0.326 0.294 0.242 0.199 0.278 0226 0.262 0.211 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.123 0.107 0.093 0.071 0.054 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.194 0.164 0.116. 0.083 0.070 0,060 0.043 0.031 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 Period 28 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0.116 Period 29 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.107 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.135 0.106 0.084 0.053 0.125 0.098 0.076 0.047 0.090 0.069 0.042 0082 0.063 0.037 0.099 0.075 0.057 0.033 0.033 0.026 0.021 0.014 0.009 0.029 0.023 0.018 0.011 0.007 0.026 0.022 0.020 0.016 0.010 0.006 0.017 0.014 0.008 0.005 0.020 0.015 0.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.005 0.004 0.003 0.001 0.001 0.013 0.009 0.003 0.001 0.001 0.001 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 1.970 1.942 1.913 1.886 Period 3 2.941 2.884 2.829 2.775 Period 4 3.902 3.808 3.717 Period 5 4.853 4.713 4.580 Period 6 5.795 5.601 5.417 Period 7 6.728 6.472 Period 8 7.652 7.325 6.230 7.020 Period 9 8.566 8.162 7.786 Period 10 9.471 8.983 8.530 5% 6% 7% 8% 9% 10% 0952 0.943 0.935 0.926 0.917 0.909 1.859 1.833 1.808 1.783 1.759 1.736 2.723 2.673 2.624 2.577 2.531 2.487 3.630 3.546 3.465 3.387 3.312 3.240 3.170 4.452 4.329 4.212 4.100 3.993 3.890 3.791 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.784 3.685 3.498 3.326 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.160 4.039 3.812 3.605 6.733 6.463 6.210 5.971) 5.747 5.535 5.335 4.968 4.639 4.487 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 8.111 7.722 7.360 7.024 6.710 6.418 6 145 5.650 5.216 5.019 Present Value of Ordinary Annuity of $1 12% 14% 15% 16% 18% 20% 0.893 0.877 0.870 0.862 0.847 0.833 1.690 1.647 1.626 1.605 1.566 1.528 2.402 2.322 2.283 2.246 2.174 2.106 3.037 2.914 2.855 2.798 2.690 2.589 3.605 3.433 3.352 3.274 3.127 2.991 3.889 4 288 4.344 4.078 3.837 4.607 4.303 4.031 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.306 7.887 7.499 Period 12 11.255 10.575 9.954 8.863 8.384 7.943 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 Period 17 15.562 14.292 13.166 12.166 11 274 10.477 9.763 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10 336 8.760 9.385 7.139 6.805 6.495 5.938 5.453 5.234 7.536 7.161 6.814 6.194 5.660 5.421 7.904 7.487 7 103 6.424 5.842 5.583 8.244 7.786 7.367 6.628 6.002 5.724 8.559 8.061 7.606 6.811 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 6.142 5.847 5.575 5.092 4.675 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10 017 9.292 8.649 5,973 5.384 4891 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4.925 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10 529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4937 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 Period 26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9 161 7.896 6.906 6.491 6.118 5.480 4.956 Period 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4.964 Period 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.975 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.566 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 8.244 7.105 6.642 6.233 5.548 4.997 6.246 5.554 4.999 Period 50 39,196 31.424 25.730 21.482 18.256 15.762 13.801 8.304 7.133 6.661 5.421 5.197 4.793 4.439 5.583 5.342 4.910 4.533 5724 5.468 5.008 4.611 5.847 5.575 5.092 4.675 7.562 6.687 6.312 6 6 097 6.534 6.152 5.502 4.970 11.925 10.757 9.779 12.233 10.962 9.915