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): (Click the icon to view the scenarios.) .) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value Ordinary of Annuity of $1 table.) Read the requirements. . Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yielple tho babaco Pound to the same dallo Begin by calculating the present value of each scenario using an 8% discount rate. (Round the amounts to th Reference Present value of Scenario 1 = X Present value of Scenario 2 = Present value of Scenario 3 appears to be the best option. Based on an 8% discount rate, its present value is the Requirement 2. Would your preference change if you used a 12% discount rate? Begin by calculating the present value of each scenario using a 12% discount rate. (Round the amo Present value of Scenario 1 = highest lowest Present value of Scenario 2 = Present value of Scenario 3 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Perlod 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Future Value of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.000 1.040 1.050 1.060 | 1.070 1.090 1.00 .100 1.120 1.140 1.150 1.020 1.040 1051 1.082 1.062 1.103 1.124 1.145 1.145 1.166 1.1881.210 1.254 1.300 1.323 1.030 1.081 1.093 1.125 1.158 1.191 122 1230 1.295 1.331 1.405 1.432 1521 1.041 1.0821.126 1.170 1.216 1.262 1.311 1.350 1.4121.464 1.574 1.689 1.749 1.051 1.104 1.159 1.217 1.276 1.338 1403 1.403 1.469 1.539 1.611 1.762 1.925 2011 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1587 1.677 1.772 1.374 2.195 2313 1.072 1.714 1.149 1230 1.316 1.407 1.504 1606 1.7141.8281.949 2.211 2.502 2660 1.003 1.1721.287 1.389 1.477 1.564 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 1.105 1.219 1344 1.480 1.529 1.791 1.937 2 159 2.367 2.584 3.106 3.707 4.048 1.116 1.24313841.539 1.710 1.898 2.105 2332 2.580 2.853 3.479 4 226 4.652 1.127 1.268 1.426 1.601 1.796 2.012 2 252 2518 2.813 3.138 3.896 4.818 5350 1.138 1.2941.469 1.685 1.986 2.133 2410 2720 3.068 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2 937 3.342 3.798 4.887 6.261 7.076 1.181 1.346 1550 1.801 2.079 2.3972.759 3.172 3.642 4.177 5.474 7.13 6.137 1.173 1.373 1.605 1.873 2.183 2.540 2952 3.426 2.970 4.595 6.130 8.137 9.358 1.184 1400 1653 1.948 2.292 2.653 3.159 3.700 4.528 5.064 6.866 9.276 10.75 1.196 1.428 1.702 2.028 2.407 2.854 3.380 3.996 4.717 5.560 7.690 10.50 12.39 1.2018 1457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.813 12.06 1423 1.220 1.406 1.808 2.191 2.853 3.2073.870 4.631 5.604 3.727 9.846 13.74 16.37 1.232 1.516.850 2.279 2.786 3.400 4.141 5.034 6.1097.400 10.80 15.67 18.82 1.245 1.546 1.546 1.918 2.370 2.925 3.604 4.430 5.437 5.659 3.140 12.10 3,604 17.86 2164 1.257 1.577 1974 2.465 3.072 3.820 4.741 5.871 7.258 3.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4,049 5.072 6.341 6.341 7.911 9.850 15.18 23.21 28.63 1.282 1.541 2094 2.685 3.386 4.292 5.427 6.848 0.623 10.83 17.00 28.46 32.92 1.295 1.673 2.157 2.772 3.556 4.549 5.807 7.396 9.399 11.92 19.04 30.17 37.86 1.306 1.707 2.221 2.883 3.733 4.622 6214 7.930 1025 13.11 21.32 34.39 43.54 1.321 1.741 2.288 2.999 3.820 5.112 6.649 8627 11.17 14.42 23.88 39.20 50.07 1.335 1.776 2.357 3.119 4.116 5.418 7.114 9317 12.17 15.85 25.75 44.69 57.58 Using a 12% discount rate change the preference in this problem. 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): i (Click the icon to view the scenarios.) . (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value Ordinary of Annuity of $1 table.) Read the requirements. . Requirement Calculate the present value of each scenario using an 8% discount rate. Which scenario vialds the hinhest orosent value? Round to the nearest dollar Begin by calculating the present value of each scenario using an 3% discount rate. (Round the am Reference Present value of Scenario 1 = Present value of Scenario 2 - Present value of Scenario 3 appears to be the best option. Based on an 8% discount rate, its present value is the Requirement 2. Would your preference change if you used a 12% discount rate? Begin by calculating the present value of each scenario using a 12% discount rate. (Round the am Present value of Scenario 1 = Present value of Scenario 2 = Present value of Scenario 3 = Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.900 0.980 0.971 0.952 0.862 0943 0.025 0.926 0.817 0.909 0.298 0.877 0.870 0.862 0.847 0833 Period 20.980 0.961 0.943 0.925 0.9070890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.784 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.592 0.572 0.552 0.516 0.482 Period 5 0.861 0.906 0.863 0.822 0.784 0.747 0.713 0.881 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Perlod 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.506 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 70.963 0.971 0.813 0.750 0.711 0.685 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0233 Period 9 0.914 0.837 0.768 0.703 0.545 0.592 0.544 0.544 0.500 0.40 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.920 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.383 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0237 0.215 0.1950.162 0.135 Period 12 0.887 0.798 0.701 0.625 0.557 0.497 0.444 0.357 0.356 0.319 0.257 0.206 0.167 0.188 0.137 0.112 Period 13 0.879 0.773 0.681 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 Period 14 0.870 0.758 0.661 0.577 0.5C50.442 0.388 0.340 0.259 0.263 0.205 0.150 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.565 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.399 0.22 0.22 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.1980.148 0.108 0.093 0.000 0.00 0.045 Period 18 0.836 0.700 0.587 0.494 0.4160350 0.296 0.250 0.212 0.180 0.130 0.095 0.021 0.069 0.051 0.038 Period 19 0.828 0.896 0.570 0.475 0.396 0.331 0.277 0.232 0.154 0.164 0.116 0.083 0.070 0.080 0.043 0.031 Period 20 0.820 0.673 0.564 0.456 0.377 0.3120.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.560 0.538 0.439 0.359 0294 0.242 0.242 0.09 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0.547 0.522 0.422 0.3420278 0.226 0.184 0.150 0.123 0.003 0.056 0.046 0.038 0.026 0.018 Perlod 23 0.795 0.634 0.507 0.406 0.326 0 262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.040 0.033 0.022 0.015 Period 24 0.789 0.322 0.492 0.390 0.3100247 0.157 0.158 0.126 0.102 0.068 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.2950 233 0.14 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 0.351 0.281 0220 0.172 0.135 0.106 0.084 0.063 0.033 0.026 0.021 0.014 0.009 Period 27 0.764 0.586 0.450 0.347 0.268 0207 0.161 0.25 0.098 0.076 0.047 0.028 0.023 0.018 0.011 0.007 Period 28 0.757 0.574 0.437 0.333 0.265 0.1960.150 0.116 0.000 0.069 0.042 0.026 0.020 0.0126 0.020 0.016 0.010 0.006 Period 29 0.7490.583 0.424 0.321 0.243 0.1950.141 0.-07 0.002 0.063 0.037 0.022 0.017 0.014 0.008 0.005 A LA LA LA LA LA Using a 12% discount rate V change the preference in this problem. would would not scount rate. (Round the amounts to the nearest dollar.) More Info 1. $8,000 per year at the end of each of the next five years 2. $50,250 (lump sum) now 3. $99,850 (lump sum) five years from now rate, its pl count rate scount ra Print Done Future Value of Ordinary Annuity of $1 4% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 5% 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 3.0303.060 3.091 3.122 3.153 4.060 4.122 4.184 4.246 4.310 5.101 5.204 5.309 5.416 5.526 6% 1.000 2.060 3.184 4.375 5.637 7% 8% 9% 10% 1.000 1.000 1.000 1.000 2.070 2.080 2.090 2.100 3.215 3.246 3.278 3.310 4.440 4.506 4.573 4.641 5.7515.867 5.985 6.105 12% 14% 15% 1.000 1.000 1.000 2.1202.140 2.150 3.374 3.440 3.473 4.779 4.921 4.993 6.353 6.610 6.742 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 6.802 7.214 7.434 7.662 7.898 8.142 8.286 8.583 8.8929.214 9.549 9.369 9.755 10.16 10.58 11.03 10.46 10.95 11.46 12.01 12.58 6.975 7.153 7.336 7.523 7.716 8.394 8.654 8.923 9.200 9.487 9.897 10.260 10.64 | 11.03 11.44 11.49 11.98 12.49 13.02 13.58 13.18 13.82 14.49 15.1915.94 8.115 8.536 8.754 10.09 10.73 11.07 12.30 13.23 13.73 14.78 16.09 16.79 17.55 19.34 | 20.30 Period 11 Period 12 Period 13 Period 14 Period 15 11.57 12.17 12.81 | 13.49 14.21 12.68 | 13.41 | 14.19 15.03 15.92 13.81 | 14.68 | 15.62 16.63 17.71 14.95 15.97 17.09 18.2919.60 16.10 17.29 18.60 20.02 21.58 14.97 16.87 18.88 21.02 23.28 15.78 16.65 17.56 18.53 17.89 18.98 20.14 21.38 20.14 21.50 22.95 24.52 22.55 24.21 26.02 27.98 25.13 | 27.15 29.36 | 31.77 20.65 23.04 24.35 24.13 27.27 29.00 28.03 32.09 34.35 32.39 37.58 40.50 37.28 43.84 47.58 Period 16 Period 17 Period 18 Period 19 Period 20 17.26 18.64 20.16 21.82 23.66 25.67 18.43 20.01 21.76 23.70 25.84 28.21 19.61 21.41 23.41 25.65 28.13 30.91 20.81 22.84 25.12 27.67 30.54 33.76 22.02 24.30 26.87 29.78 33.07 36.79 27.89 30.32 33.00 35.95 42.75 50.98 55.72 30.84 33.75 36.97 40.54 48.88 59.12 65.08 34.00 37.45 41.30 45.60 55.75 68.39 75.84 37.38 41.45 46.02 51.16 63.44 78.97 88.21 41.00 45.76 51.16 57.28 72.05 91.02 102.4 Present Value of Ordinary Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 0.990 0.980 1.970 1.942 2.941 2.884 3.902 3.808 4.853 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 5% 6% 7% 0.952 0.943 0.935 1.859 1.833 1.808 2.723 2.673 2.624 3.546 3.465 3.387 4.329 4.212 4.100 8% 9% 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 3.312 3.240 3.170 3.993 3.890 3.791 12% 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 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% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 Period 6 Period 7 Period 8 Period 9 Period 10 5.795 5.601 6.728 6.472 7.652 7.325 8.5668.162 9.471 8.983 5.417 6.230 7.020 7.786 8.530 5.242 6.002 6.733 7.435 8.111 5.076 4.917 4.767 5.786 5.582 5.389 6.463 6.210 5.971 7.108 6.802 6.515 7.722 7.360 7.024 4.623 4.486 4.355 5.206 5.033 4.868 5.747 5.535 5.335 6.247 5.995 5.759 6.710 6.418 6.145 4.111 3.889 4.564 4.288 4.968 4.639 5.328 4.946 5.650 5.216 3.784 4.160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 Period 11 Period 12 Period 13 Period 14 Period 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 11.255 10.575 | 9.954 9.385 8.863 8.384 7.943 12.134 11.348 10.635 | 9.986 9.394 8.853 8.358 13.004 12.106 11.296 | 10.563 9.899 9.295 8.745 13.865 12.849 | 11.938 11.118 10.380 9.712 9.108 7.139 6.805 6.495 7.536 | 7.1616.814 7.904 7.487 7.103 8.244 7.786 7.367 8.559 8.061 7.606 5.938 5.453 6.194 5.660 6.424 5.842 6.6286.002 6.811 6.142 5.234 5.421 5.583 5.724 5.847 5.029 5.197 5.342 5.468 5.575 4.656 4.327 4.793 4.439 4.910 4.533 5.008 4.611 5.092 4.675 Period 16 Period 17 Period 18 Period 19 Period 20 14.718 | 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 15.562 14.292 13.166 12.166 11.274 10.477) 9.763 9.122 8.544 8.022 7.1206.373 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 18.046 16.351 14.877 13.590 12.462|11.470 10.594 | 9.818 9.129 8.514 7.469 6.623 5.954 6.047 6.128 6.198 6.259 5.669 5.749 5.818 5.877 5.929 5.1624.730 5.222 4.775 5.273 4.812 5.316 4.844 5.353 4.870