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 a year at the end of each of the next eight years 2. $50,050 (lump sum) now 3. $100,250 (lump sum) eight years from now Calculate the present value of each scenario using a 8% interest rate. Which scenario yields the highest present value? (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) Using a 8% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) - X Data table Data table Present value Scenario 1 = Scenario 2 Present Value of Annuity of $1 Scenario 3 Period 6% 8% 10% Present Value of $1 6% % 8% 8% 10% 12% Period 12% 1 0.943 0.926 0.909 0.893 Which scenario yields the highest present value? 1 0.943 0.926 0.909 0.893 2 1.833 1.783 1.736 1.690 2 0.890 0.857 0.826 appears to be the best option. Based on a 8% interest rate, its present value is the 0.797 3 2.673 2.577 2.487 2.402 0.794 0.751 0.712 4 4 3.465 3.312 3.170 3.037 0.840 0.792 4 0.735 0.683 0.636 5 4.212 3.993 3.791 3.605 5 0.747 0.681 0.621 0.567 6 4.917 4.355 4.111 4.623 5.206 6 0.705 0.630 0.564 0.507 7 5.582 4.868 4.564 7 0.665 0.583 0.513 0.452 8 6.210 5.747 5.335 4.968 8 0.627 0.467 0.404 9 6.802 6.247 5.759 5.328 0.540 0.500 9 0.592 0.424 0.361 10 7.360 6.710 6.145 5.650 10 0.558 0.463 0.386 0.322 Print Done Print Done