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. $50,100 (lump sum) now 3. $98,500 (lump sum) eight years from now Click the icon to view Present Value of $1 table)(Cick the icon to view Present Value of Ordinary Annuity of $1 table) Read the requirements. Requirement 1 Calculate he present value o each scenario us n the present value to the nearest whole dollar.) an 8% discount rate. has present valu ? Round the actors to hree decimal paces h ch scenario y s he X 0 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? Compute the present value o each scenario using a 10% discount rate. Ro n the actors o hree decim a places X K ound the present value othe nearest whole ar. Present Value Scenario 1: Scenario2: Scenario 3: appears to be the best option. Based on a 10% interest rate, its present value is the 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. Would your preference change if you used a 10% discount rate? 2. Print Done Present Value of Ordinary Annuity of $1 Periods | 1% | 2% | 3% | 4% 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% 10.990 0.9800.9710.962 0.952 0.943 0.9350.9260.917 0.9090.893 0.877 0.870 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.8591.833 1.808 1.7831.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 3 2.9412.884 2.8292.775 2.7232.6732.6242.577 2.5312.487 2.402 2.322 2.283 2.246 2.1742.106 43.9023.808 3.717 3.6303.5463.465 3.387 3.3123.240 3.1703.037 2.914 2.8552.7982.6902.589 54.8534.7134.5804.4524.329 4.212 4.1003.993 3.890 3.7913.6053.4333.3523.2743.1272.99 6 5.7955.601 5.417 5.242 5.0764.917 4.767 4.6234.4864.355 4.1113.8893.7843.6853.4983.326 7 6.728 6.4726.230 6.002 5.786 5.5825.3895.2065.033 4.868 4.564 4.2884.160 4.0393.812 3.605 8 7.6527.325 7.020 6.733 6.4636.210|5.9715.7475.535 5.3354.9684.6394.487 4.3444.078 3.837 98.566 8.162 7.7867.435 7.108 6.802 6.515 6.247 5.9955.759 5.328 4.946 4.772 4.607 4.3034.031 10 9.4718.9838.5308.11 7.7227.360 7.0246.710 6.418 6.1455.650 5.216 5.019 4.833 4.4944.192 11 10.3689.7879.2538.7608.306 7.887 7.4997.139 6.805 6.4955.9385.453 5.2345.029 4.6564.327 12 11.25510.575 9.9549.385 8.8638.384 7.9437.536 7.161 6.814 6.1945.660 5.4215.197 4.7934.439 13 12.134 11.348 10.635 9.986 9.3948.8538.3587.9047.487 7.1036.4245.8425.5835.3424.910 4.533 14 13.004 12.106 11.296 10.563 9.8999.2958.7458.2447.7867.3676.628 |6.002 5.7245.468 5.0084.611 15 13.865 12.84911.938 11.118 10.380 9.712 9.108 8.5598.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 16 14.718 13.578 12.561 11.652 10.838 10.106 9.4478.851 8.313 7.824 6.974 6.265 5.9545.6695.162 4.730 17 15.562 14.292 13.166 12.166 11.274 10.4779.7639.122 8.5448.022 7.1206.373 6.0475.749 5.222 4.775 18 16.39814.99213.754 12.659 11.690 10.828 10.059 9.3728.7568.201 7.250 6.467 6.1285.818 5.2734.812 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.6048.9508.3657.3666.550 6.1985.8775.316 4.844 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.8189.129 8.5147.469 6.6236.2595.9295.3534.870 5% | 6% 7% | 8% Present Value of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 1. 0.9900.9800.9710.962 0.9520.9430.9350.9260.9170.9090.8930 2 0.9800.961 0.943 0.925 0.907 0.890 0.873 0.857 0.8420.826 0.7970 30.971 0.942 0.915 0.8890.864 0.840 0.8160.7940.772 0.7510.7120 40.9610.9240.8880.8550.8230.7920.7630.7350.7080.6830.636 0 50.9510.906 0.8630.822 0.7840.747 0.713 0.6810.6500.6210.5670 60.9420.8880.837 0.790 0.7460.7050.6660.630 0.596 0.5640.5070 7 0.9330.871 0.813 0.760 0.711 0.6650.623 0.5830.5470.513 0.4520 80.9230.8530.7890.7310.677 0.627 0.5820.5400.502 0.467 0.4040 90.9140.837 0.7660.7030.645 0.5920.5440.5000.460 0.4240.3610 10 0.905 0.8200.7440.676 0.6140.5580.5080.463 0.422 0.3860.3220 11 0.8960.8040.7220.6500.5850.527 0.475 0.4290.3880.3500.2870 12 0.887 0.7880.7010.625 0.557 0.497 0.4440.397 0.356 0.319 0.2570 13 0.8790.773 0.6810.6010.5300.4690.415 0.3680.3260.2900.2290 14 0.870 0.7580.661 0.5770.505 0.442 0.388 0.340 0.299 0.263 | 0.205 0 15 0.861 0.743 0.642 0.5550.4810.4170.3620.3150.2750.2390.1830 16 0.8530.7280.623 0.5340.4580.3940.3390.292 0.252 0.2180.163 0 17 0.844 0.7140.605 0.513 0.436 0.371 0.317 0.270 0.2310.198 0.1460 18 0.836 0.7000.5870.4940.4160.3500.2960.2500.212 0.1800.1300 19 0.8280.6860.570 0.475 0.3960.331 0.277 0.232 0.1940.164 0.116 0 20 0.820 0.6730.5540.4560.3770.3120.2580.2150.1780.1490.104(
