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. $7,550 per year at the end of each of the next eight years 2. $50,250 (lump sum) now 3. $100,250 (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 Reference X grand 550 5.250 50,25 Click Present Value of $1 Periods 12% the 1 2 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 0.971 0.943 0.915 0.888 0.863 0.962 0.925 0.889 0.855 0.822 uirem mall to the 4 5 6 7 enario 0.942 0.833 0.923 0.914 0.905 8 9 10 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 enario 5% 6% 7% 0.952 0.943 0.935 0.907 0.890 0.873 0.864 0.840 0.816 0.823 0.792 0.763 0.784 0.747 0.713 0.746 0.705 0.666 0.711 0.665 0.623 0.677 0.627 0.582 0.645 0.592 0.544 0.614 0.558 0.508 0.585 0.527 0.475 0.557 0.497 0.444 0.530 0.469 0.415 0.505 0.442 0.388 0.481 0.417 0.362 0.458 0.394 0.339 0.436 0.371 0.317 0.416 0.350 0.296 0.396 0.331 0.277 0.377 0.312 0.258 9% 10% 14% 0.926 0.917 0.909 0.893 0.877 0.857 0.842 0.826 0.797 0.769 0.794 0.772 0.751 0.712 0.675 0.735 0.708 0.683 0.636 0.592 0.681 0.650 0.621 0.567 0.519 0.630 0.596 0.564 0.507 0.456 0.583 0.547 0.513 0452 0.400 0.540 0.502 0.467 0.404 0.351 0.500 0.460 0.424 0.361 0.308 0.463 0.422 0.386 0.322 0.270 0.429 0.388 0.350 0.287 0.237 0.397 0.356 0.319 0.257 0.208 0.368 0.326 0290 0.229 0.182 0.340 0.299 0.263 0.205 0.160 0.315 0.275 0239 0.183 0.140 0.292 0.252 0.218 0.123 0.270 0.231 0.198 0.146 0.108 0.250 0.212 0.180 0.130 0.095 0.194 0.164 0.116 0.083 0.215 0.178 0.149 0.104 0.073 15% 16% 18% 20% 0.870 0.862 0.847 0.833 0.756 0.743 0.718 0.694 0.658 0.641 0.609 0.579 0.572 0.552 0.516 0.482 0.497 0.476 0.437 0.402 0.432 0.410 0.370 0.335 0.376 0.354 0.314 0.279 0.327 0.305 0.266 0.233 0.284 0.263 0.225 0.194 0.247 0.227 0.191 0.162 0.215 0.195 0.162 0.135 0.187 0.168 0.137 0.112 0.163 0.145 0.116 0.093 0.141 0.125 0.099 0.078 0.123 0.108 0.084 0.065 0.107 0.093 0.071 0.054 0.093 0.080 0.060 0.045 0.081 0.069 0.051 0.038 0.070 0.060 0.043 0.031 0.061 0.051 0.037 0.026 enario 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 quirem 0.722 0.650 0.701 0.625 0.681 0.601 0.661 0.577 0.642 0.555 0.623 0.534 0.605 0.513 0.587 0.494 0.570 0.475 0.554 0.456 0853 0.163 ompute hole doll barest 16 17 18 19 20 0.844 0.836 0.828 0.820 0.728 0.714 0.700 0.686 0.673 0.232 cenario ater any Print Done Reference grand 550 5.250 00,25 Click Periods the 1 to three 2 3 4 5 uirem mall 3.037 6 7 anario 9 10 5.328 enario Present Value of Ordinary Annuity of $1 1% 2% 3% 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 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2673 2.624 2.577 2.531 2.487 2.402 2.322 2283 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.5463465 3.387 3.312 3.240 3.170 2.914 2.855 2.798 2.690 2589 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 5.242 5.076 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 5389 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 4.968 4.639 4487 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 4.946 4.772 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 7.0246.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 10.3689.787 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 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5421 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 11.93811.118 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 9447 8.851 8.313 7.824 6.974 6.265 5.9545,669 5.162 4.730 15.562 14292 13.166 12.166 11.274 10.4779.763 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 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 17.226 15.678 14.32413.13412085 11.15810.336 9.604 8.950 8.365 7.356 6.550 6.198 5.877 5.316 4.844 18.046 16.35114.877 13.5901246211.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 onario 11 12 13 14 15 equirem parest ompute hole doll 16 17 18 19 20 Scenario nter any Print Done i 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 10% discount rate? Print Done 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, XXXX. 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 Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present valuo? (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 Scenario 1 Scenario 2 uld your preference change if you used a 10% discount rate? I value of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest Scenario 3 sont Value Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present valuo? (Round the factors to three decimal places, XXXX 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 Requirement 2. Would your preference change if you used a 10% discount rate? highest X.XXX Round the present value to the nearest Compute the present value of each scenario using a 10% discount rate. (Round the factors to the whole dollar lowest Requirement 2. Would your preference change if you used a 10% discount rate? Compute the present value of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest esc whole dollar) Present Value e sco Scenario 1 Scenario 2 e scor Scenario 3: appears to be the best option. Based on a 10% interest rate, its present value is the Requirement 2. Would your preference change if you used a 10% discount rate? Compute the present value of each scenario using a 10% discount rate. (Round the factors to three decimal places, XXXX. Round the present value to the nearest whole dollar) sent Value Scenario 1 Scenario 2 Scenario 3 appears to be the best option. Based on a 10% interest rate, its present value is the