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. $8.250 a year at the end of each of the next eight years Data table 2. $48,350 (lump sum) now 3. $98,650 (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? Present Value of Annuity of S1 E (Click the icon to view the present value annuity factor table.) a (Click the icon to View the present value factor table.) Period 6% 8% 10% 12% 1 0.943 0.926 0.909 0.893 _____ 2 1.833 1.703 1.736 1.690 3 2.673 2.577 2.487 2.402 Using a 6% interest rate. calculate the present values for each scenario. (Round the amounts to the nearest dollar.) 4 3.465 3-312 3.170 3037 Present value 5 4.212 3.993 3.791 3.605 509W\") 1 = 6 4.917 4.623 4.355 4.111 509nm? 2 = Data table 7 5.532 5.206 4.868 4.564 Scenario 3 = a 6,210 5.747 5.335 4963 Which scenario yields the highest present value? 9 61802 6-247 5-759 5328 l appears to be the best option. Based on a 6% interest rate, its present value is the l . 6% Present/\"2|\" 0f \"10% 10 7360 6'7\") 6'145 5550 1 0.943 0.926 0.909 2 0.890 0.857 0.826 0.797 3 0.840 0.794 0.751 0.712 4 0.792 0.735 0.683 0.636 5 0,747 0.681 0.621 0,567 6 0.705 0.630 0.564 0.507 7 0.665 0.583 0.513 0.452 8 0.627 0.540 0.467 0.404 9 0,592 0.500 0.424 o 0.558 0.463 0.386 0.322 'me Remaining: 01:31:17 m