Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose):

1.8,000 a year at the end of each of the next eight years

2.49,650 (lump sum) now

3.99,850 (lump sum) eight years from now

Calculate the present value of each scenario using an 10% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 10% interest rate?

Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios ivou got to choose) 1. 58,000 a yoar at the end of each of the next eight years 2. 549,650 (lump sum) now 3. 599,850 (Gump sum) eight years from now Calculate the present value of each scenario using an 8% interest rate. Which scenarlo yields the highast present valie? Would your preference change if you used a to (Click the icon to view the present value annuity factor table.) (Click the icon to vienw the prosent vatiee factor table). (Click the icon to viow the future value annulty fuctor table) (Click the icon io view the future value lactor table) Using an 8% interest rate, calculale the present values for each scenario. (Round thir amounts to the nearest doilar) Present value of Scenario 1 . Present Value of Annuity of $1 Future Value of Annuity of $1 Present Value of $1 Future Value of $1