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 per year at the end of each of the next eight years 2. $50,050 (lump sum) now 3. $100,050 (lump sum) eight 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 v. uld your preference change if you used a 12% discount rate? I 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.) Scenario 1 Scenario 2 Scenario 3 sent Value 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 highest lowest Enter any number in the edit fields and then continue to the next question. i Reference Present Value of $1 Vow 0.592 Periods 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 0.803 0.647 0.522 0.795 0.634 0.507 0.788 0.622 0.492 0.780 0.610 0.478 Lo 772 150R LO 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.925 0.907 0.890 0.873 0.8570.842 0.826 0.797 | 0.769 0.756 0.743 0.7180.694 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.790 0.746 0.705 | 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.703 0.645 0.544 0.500 0.460 0.424 0.308 0.284 0.263 0.225 0.194 0.676 0.614 0.558 0.558 0.508 0.463 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.650 0.585 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 | 0.162 0.135 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.125 0.099 0.078 | 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.534 0.458 | 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.475 0.396 | 0.331 0.277 0.232 0.194 0.164 0.083 0.070 0.060 0.043 0.031 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.022 0.015 0.390 2900 3100.247 0.310 | 0.197 0.158 0.126 0.1020.066 0.043 0.035 0.028 0.019 0.013 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 L 264 L 0004 L 200 10 172 10 125 10106 LA ORA L 00520022106 L 0024 Lolonna 0.141 0.116 0.033 Print Done U.795 0.788 0.780 0.772 0.764 0.757 0.749 0.742 0.672 0.608 | 0.034 0.622 0.610 0.598 0.586 0.574 0.563 0.552 0.453 0.372 0.007 0.492 0.478 0.464 0.450 0.437 | 0.424 0.412 0.307 0.228 0.400 0.390 0.375 0.361 0.347 0.333 | 0.321 0.308 0.208 0.141 0.326 0.310 0.295 0.281 0.268 0.255 0.243 0.231 0.142 0.087 U.202 0.247 0.233 0.220 0.207 0.196 0.185 0.174 0.097 0.054 .211 0.197 0.184 0.172 0.161 0.150 0.141 0.131 0.067 0.034 .17UU. 130 0.158 0.126 0.146 0.116 0.135 0.106 0.125 0.098 0.116 0.090 0.107 0.082 0.099 | 0.075 0.046 0.032 0.021 0.013 U.112 0.102 0.092 0.084 0.076 0.069 0.063 0.057 0.022 0.009 0.074 0.049 0.066 0.043 0.059 0.038 0.053 0.033 0.047 0.029 0.042 0.026 0.037 0.022 0.033 0.020 0.0110.005 0.003 0.001 0.040 0.035 0.030 0.026 0.023 0.020 0.017 0.015 0.004 0.001 | 0.053 0.022 0.028 0.019 0.024 0.016 0.021 0.014 0.018 | 0.011 0.016 0.010 0.014 0.008 0.012 0.007 0.003 0.001 0.001 U.U15 0.013 0.010 | 0.009 0.007 0.006 0.005 0.004 0.001 Print Done A Reference Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.970 1.942 1.913 | 1.886 1.859 1.833 | 1.808 1.7831.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 | 2.690 2.589 4.853 4.713 4.580 4.452 4.329 | 4.212 4.100 3.993 3.890 3.791 3.605 3.433 | 3.352 3.274 3.127 2.991 5.795 5.601 5.417 5.2425.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 | 5.335 4968 4.639 4.487 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 | 4.772 4.607 4.303 4.031 9.471 8.983 8.530 8.1117.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.368 9.787 | 9.253 8.760 8.306 | 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 11.255 10.575 9.954 9.3858.863 8.384 7.943 7.536 | 7.1616.814 6.194 5.660 5.421 5.197 | 4.793 4.439 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 13.004 12.106 | 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 13.865 12.849 | 11.938 11.118 10.380 9.712 9.108 8.559 8.061 | 7.606 6.811 6.142 5.847 5.575 5.092 4.675 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 5.6695.162 4.730 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 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.7568.201 7.250 6.467 6.128 5.818 | 5.273 4.812 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 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 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 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 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.5808.883 7.718 | 6.792 6.399 6.044 5.432 4.925 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 | 7.784 6.835 6.4346.073 5.451 | 4.937 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.8436.873 6.464 6.097 5.467 4.948 | 22 705 120 124 | 17 877 | 15 AR214275 12.002 14 926 10 210 laana la 164 | 7 Q6 LG One LG104 1 6 110 15000 L 1056 Print Done 4.925 4.937 4.948 9.077 20.456 21.243 22.023 22.795 23.560 24.316 25.066 25.808 32.835 39.196 10.292 10.444 14.067 13.469 12.303 | 11.212 10.371 9.300 0.003 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 20.121 | 17.877 15.983 14.375 13.003 11.826 10.810 | 9.929 | 9.161 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 21.281 18.764 16.663 13.406 12.137 11.051 10.116 9.307 21.844 19.188 16.984 15.141 13.591 | 12.278 11.158 10.1989.370 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 1.7 100.792 7.784 6.835 6.873 7.896 6.906 7.943 6.935 7.984 6.961 8.022 6.983 8.055 | 7.003 8.244 7.105 8.304 7.133 0.399 6.434 6.464 6.491 6.514 6.534 6.551 6.566 6.642 6.661 0.044 6.073 6.097 6.118 6.136 6.152 6.166 6.177 6.233 6.246 3.432 5.451 5.467 5.480 5.492 5.502 5.510 5.517 5.548 5.554 4.956 4.964 4.970 4.975 4.979 4.997 4.999 Print Done Requirements 1. Calculate the present value of each scenario using an 8% 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? Print Print Done]