Your grandfather would like to share some of his fortune with you. He otters to give you money under one of the following scenarios (you get to choose) 1. $7 400 per year at the end of each of the next eight years 2.550 250 (lump sum) now 3. 998 500 (lump sum) oight years from now (Click the icon to view Prosent Value of $1 tablo) (Click the icon to view Present Value of Ordinary Annuity of S1 table) Read the lancement Requirement 1. Calculate the prosent value of each scenario using an 8% discount rato Which sconano yields the highest present value? (Round the factors to three decimal places, X XXX. Round the present value to the nearest whole dolar) Scenario 1,8% discount rate Present value = Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.9620.952 0.943 0935 0.926 0.917 0909 08930 877 0.870 0 862 0.847 0833 Period 2 0.980 0961 0.9430 925 0.9070 890 0873 0857 0.842 0826 0 797 0.769 0.7560743 0.7180.694 Period 3 0.9710 942 0.915 0.889 0 864 0.840 0 816 0.794 0.772 0.751 0.712 0.675 0658 0.6410 609 0.579 Period 4 -10.961 0924 0.888 0.855 0.8230.792 0.763 0735 0708 0.683 06360 592 0.572 0552 0516 0.482 Period 5 0.951 0 906 0.863 0.822 0784 0.747 0.713 0 681 0.650 0.6210 567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 O 888 0.837 0.790 0.746 0.705 0.666 0.6300 596 0.564 0507 0.456 0.432 0.410 0.370 0335 Period 7 0.933 0.874 0.813 0.760 07110.665 0.623 0.583 0.547 0 513 0.452 0.400 0.376 0354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.6770 627 0.582 0.540 0 502 0.467 0.4040 351 0327 03050.266 0.233 Period 9 0914 0.837 0.766 0.703 0645 0.592 0.5440 500 0.460 0424 0 3610308 0 284 0 263 0 225 0 194 Period 10 10.905 0 820 0.744 06760 614 0.558 0.508 0.463 0422 0.3880 322 0.270 0247 0.227 0.191 0.162 Period 11 0 896 0.0040.722 0.650 0.585 0.527 0475 0429 0388 03500 287 0237 0215 0 195 0162 0 135 Period 12 0.887 0.788 0 701 0.625 0.5570497 0444 0397 0356 0.319 0.257 0.208 0.187 0.168 0 137 0.112 Period 13 0.879 0.773 0681 0 601 0.530 0.469 0.415 0368 d 326 0 290 0.229 0.182 0.163 0.145 0 116 0.093 Period 14 10.870 0 7580 661 0577 0.505 0.4420388 0.340 0299 0 263 0 2050.160 0 141 0.125 0.099 0078 Period 15 0.861 0.743 06420.555 0 4810417 0.362 0315 0.275 0.239 0.1830 140 0.123 0.108 0.0840.065 Period 16 0853 0728 0 623 0534 0.458 0 394 0.339 0 292 0252 0.218 0.163 0.123 0 107 0.093 0.071 0.054 Period 17 0.844 0.7140.605 0.513 0436 0.371 0.317 0 270 0.231 0.1980.146 0.108 0.093 0.080 0.060 0.045 Period 18 10 836 0700 0.587 04940416 0.350 0.296 0.250 0212 0 1800 130 0.095 0.0810069 0051 0.038 Period 19 0 828 0.686 0 5700475 03980331 0277 0 232 0.194 0.164 0 116 0.083 0.070 0.060 0.043 0.031 Period 20 10.820 067305540456 0.377 0.312 0.258 0215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.025 Period 21 0811 0 660 0.538 0439 0.359 0294 0.242 0.199 0 164 0135 0093 0064 0.053 0,044 0031 0022 Period 22 0 803 0.847 0.522 0.422 0.342 0278 0.226 0 184 0 150 0.123 0.0830 056 0.048 0.038 0.026 0018 LAMA AA Period 9 0.914 0.837 0.766 0.703 0.6450.5920544 0.500 0.460 0.424 0.361 0.308 0.284 0 263 0225 0.194 Period 10 10.905 0.820 074406760.614 0.558 0.508 0.463 0.422 0386 0.322 0 2700 2470 227 0.191 0162 Period 11 0.896 0 8040.722 0 650 0.585 0.527 0475 0.429 0.3880 350 0 287 0.2370215 0 195 0.162 0.135 Period 12 10 887 0.788 0.701 0.625 0.557 0.4970444 0.397 0.356 0319 0.257 0.2080187 0.168 0.137 0.112 Period 13 0.879 0773 0.681 0 601 0.530 0.489 0415 0368 0.326 0 290 0.229 0.182 0163 0.145 0.116 0.093 Period 140 8700.758 0.861 0577 0.505 0.4420388 0340 0.299 0.263 0 205 0.160 0.141 0.125 0.099 0.078 Period 15 0 861 0743 0.642 0.555 0.481 0.4170362 0.315 0275 0 239 0 1830 140 .0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0 394 0339 0.292 0252 0218 0.163 0.123 0.1070093 0071 0.054 Period 17 0.844 0.714 0.605 05130436 0.371 0317 0 2700.2310 198 0.146 0.108 0093008000600.045 Period 18 0836 0.700 05870494 0.416 0 350 0.296 0.250 0.212 0.1800 1300095 0.0810 069 0.051 0.038 Period 19 10.828 0 686 0,570 0475 0.396 0331 0277 0.232 0.194 0.1640.116 0.083 00700 060 0043 0.031 Period 20 0.820 0.673 0.554 0.456 0377 0.312 0.258 0215 0.178 0.149 0.104 0.073 0.081 0.0510037 0026 Period 21 10 811 0.660 0.538 0.439 0359 0.294 0242 0.199 0.1640.135 0.093 0.064 0.053 0.0440031 0.022 Period 22 10 803 0 647 0522 0.422 0.34202780 226 0 1840 150 0.123 0083 0.056 0.046 0038 0026 0.018 Period 23 0.795 0.6340507 0.406 0.326 0.262 0211 0.170 0.1390 112 0.074 0049 0.040 0.033 0.022 0.015 Period 24 0788 0 622 0492 0390 0310 0 247 0 197 0.158 0.126 d. 102 0.066 0.043 0035 0.028 0.019 0.013 Period 26 0.780 0.610 0.478 0.375 0295 0.233 0.184 0.146 0.116 0092 0.059 0.038 0.030 0.0240016 0.010 Period 26 0.772 0 598 0.464 0.361 0281 0.220 0.172 0.135 0.106 0084 0.053 0.0330 026 0.02100140 009 Period 27 10.764 0.586 0.4500347 0.268 0 207 0.161 0.125 0.098 0.076 0.047 0.0290023 0018 0.0110 007 Period 28 0757 0.574 0437 0.333 0.265 0.1960.150 0 116 0.090 0069 0.042 0.0260 0200016 0.0100.000 Period 29 0 7490.563 0.4240321 0243 0.185 0.141 0.107 0082 0.0630037 0.022 0.017 00140.008 0.005 Period 30 0.742 0552 0.412 0.308 023101740.131 0090 0.075 0.0570033 002000150012 0.007 0.004 Period 40 0 672 0.453 0.307 02080 1420 09700070046 0.03200220011 0.0050004 0.003 0.001 0.001 Period 50 0 608 0372 0228 01410087 0.054 0034 0.021 0013 0009 0.003 0.001 0.001 0.001 Present Value of Ordinary Annuity of $1 Penods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 09620.952 0.943 0935 0.9260.917 0.9090.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1913 1.886 1.859 1833 1808 1783 1759 1736 1690 1647 1626 1 6051586 1.528 Period 3 2941 2884 2829 2775 2723 2673 2.624 2577 2531 2487 240223221 2283 22462 174 2.106 Period 4 3.902 3.808 3.717 3630 3.546 3465 3387 3312 3.240 3.1703.0372914 2.855 2798 2690 2.589 Period 5 4853 4713 4580 4.452 4.329 4.212 4.100 3.9933.890 3.791 3.605 3433 3352 3.274 3.127 2.991 Period 6 5.795 5.601 5:417 5242 5076 4.917 4.767 4.623 4.4864 355 4.111 3.889 3784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5786 5582 53895 206 50334 868 4.564 4.2884160 4.039 3.812 3.605 Period 8 7.652 7.325 70206.733 6.463 6210 5.971 57475.535 533549684.639 4487 4 344 4.078 3.837 Period 9 8.566 8 162 7.786 74357 108 6.802 6515 6 247 5 995 5.759 532849464.772 4 607 43034031 Period 10 9.471 8.983 8.530 8.111 7722 736070246.710 6.418 6.145 56505.216 50194 833 4494 4.192 Period 11 10.368 9.7879253 8.760 8.306 7 887 74997139 6.8056 495 5938 5.453 5234 5.02946564327 Period 12 11 255 10 575 9.954 93858.863 8.384 7943 7536|71616.814 6.194 5.660 5.421 5.1974.793 4439 Period 13 12.134 11 348 10 635 9.988 9.394 8.853 8.358 79047 487 7 103 6.424 5.8425583 5.3424 9104533 Period 14 13.004 12 106 11 296 10.563 9.89992958745 8.2447.786 7.367 6.628 6 002 57245468 5008 4611 Period 15 13.865 12 849 11.938 11.118 10.3809712 9.108 8.559 80617 606 6.811 61425847 5 575 50924.675 Period 16 14.718 13.578 12 561 11.652 10.838 10.106) 9.447 8.8518 313 7.8246.9746.2655.954 5.669 5.162 4.730 Period 17 15.582 14 292 13.166 12 166 11 274 10.4779.763 9.122 8544 8.02271206.373 6.047 5.7495 222 4.775 Period 18 16.398 14.992 13.75412 659 11.890 10.828 10.0599372 8.756 8.2017 250 6.467 6.128 5.818 5 273 4812 Period 19 17.226 15.6781432413.13412085 11.158 10 336 9.604 8.950 8.365 7366 6.5506.198 5.8775316 4.844 Period 20 18 04616 351 14.877 13.590 12462 11.470 10.5949.818 9.129 8.514 7.4696 623 6.259 5.9295353 4870 Period 21 18 857 17 011 15.415 14029 12 821 11.764 10.836 10.017 9.292 8649 7562 6 687 6.312 5 973 5 384 4891 Period 22 19.660 17 658 15.937 14.451 13.163|12042 11 061 10 201 9.442 8.772 7 645 6.743 6.3596.011 5.410 4.909 ERA A Period 9 8,5668.1627.786 7.435 7.108 6.802 6 515 6.247 5 995 5.759 53284946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 736070246.710 6418 6.145 5.6505.216 5.019 4.833 4.494 4.192 Period 11 10.3689787 9.253 8.760 8.306 7.887 7.499 7 139 6,805 6.495 5938 5.453 5234 50294.856 4327 Period 12 11 255 10.575 9.954 93858.8638.384 7943 7.536 71616.8146 194 5660 5421 5.1974793 4439 Period 13 12 134 11 348 10635 9.986 9 394 8.853 8 358 7904 7.487 7.103 6.4245.8425583 5.3424.910 4533 Period 14 13.004 12 106 11,296 10.5639 899 9.295 8 745 8.244 77867.367 6.628 6.002 5724 5,468 50084611 Period 15 13.865 12 849 11.938 11.118 10.380 0.712 9.108 8.559 8.061 7606 6.811 6.142 5847 5 575 5.092 4.675 Period 16 14.718 13.578 12 561 11.652 10.838 10 1069 447 8 851 8.313 7 824 6.974 6.265 5,954 56695 162 4.730 Period 17 15 562 14.292 13.166 12 166 11 274 10.477 9763 9.122 8.5448,0227 120 6373 6047 5.7495 222 4.775 Period 18 16.398 1499213.754 1265911.690 10 828) 10.059 9.372 8.756 8.2017 250 6.4676128 5 818 5.2734.812 Period 19 17 226 15678 14 32413.13412085 11 158 10.336 9.604 8.950 8.36573666.550 6 198587753164844 Period 20 18.04616 351 14 877 13590 12 462 11 470 10 594 9.818 9.1298 514 7 469 | 6.623 6.259 5.929 5 3534.870 Period 21 18 857 17 011 15415 14 020 12 821 11.764 10.836 10.0179 2028.649 75626687 6,312 5 973 53844 891 Period 22 19.660 17 658 15 937 14.451 13 163 12 042) 11 061 10.2019.442 8.772 7.6456.743 6.359 6011 5.410 4.909 Period 23 | 20.456 18 292 16 44414857 13.489 12 303 11 272 10.371 9.5808.883 7718 6792 6.399 6044 5.432 4925 Period 24 21 24318.914 16.936 15 247 13 799 12 550 11469 10.529 97078.985 7784 6835 64348073 5.451 4.937 Period 25 22.023 19.5231741315.622 14.094 12.783 11 654 10 675 9.8239.07778436.873 6.464 6.097 5.467 4.948 Period 26 22 795 20 121 17 877 15.98314 375 13.003 11 828 10 8109.929 9. 1617.896 6.906 6.491 6.118 5.480 4956 Period 27 23 56020 707 18.327 16.330 14.643 13.211 11.987 10.935 10.0279 2377943 6.935 6,514 6.138 5.492 4964 Period 28 24 31621281 18 784 16.663 14.898 13.406 12 137 11 051 10.116 9.307 7984 6.961 6.5346 152 | 5.5024.970 |Period 29 25 06621 844 19.188 16 984 15.141 13.591 12.278 11 158 10 198 9.370 8022 6.983 6.551 6.166 5.510 4 975 Period 30 25 80822 396 19.600 17 292 15 372 13.765 12.409 11.258 10 274 9.4278 055 7.003 6.5666.177 5517 4979 Period 40 32.835 27 355 23 115 19 793 17 159 15.046 13.332 11.925 10.7579.779 8.244 7.105 6.642 6.233 5.5484 997 Period 50 39.198 31.424 25.730 21.482 18 256 15.762 13.801 12 233 10.962 9.915 8 304 7.133 6661 6.246 5554 4.999