Solve various time value of money scenarios (Click the icon to view the scenarios) (Cick the icon to view the present va
Posted: Mon May 30, 2022 8:32 am
I More info 1. Daniel just hit the jackpot in Las Vegas and won $45,000! If he invests it now, at a 10% interest rate, how much will it be worth in 20 years? 2. Donald would like to have $3,500,000 saved by the time he retires in 30 years. How much does he need to invest now at a 10% interest rate to fund his retirement goal? 3. Assume that Nancy accumulates savings of $1 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for twenty years? 4. Ivana plans to invest $6,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Marisa have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? 6. Darren is considering a capital investment that costs $525,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1 $308,000 *** Year 2.. $202,000 Done Print
this savings at 12%, how much money will she be able to withdraw at the end of each year for twenty years? 4. Ivana plans to invest $6,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? 5. Assuming a 6% interest rate, how much would Marisa have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? 6. Darren is considering a capital investment that costs $525,000 and will provide the following net cash inflows: Year Net Cash Inflow Year 1 $308,000 ..... Year 2 $202,000 ... Year 3... $102,000 Using a hurdle rate of 8%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? Driet Dono to the nearest wholl ent goal? (Round ye at the end of each
- X Reference Present Value of $1 Periods 1% 2% 3% 4% 16% 18% 20% Period 1 0.990 0.980 0.971 12% 14% 0.893 0.797 0.877 0.862 0.847 0.833 0.769 0.743 0.718 0.694 Period 2 Period 3 Period 4 5% 6% 8% 10% 0.962 0.952 0.943 0.926 0.909 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 5 0.476 0.437 0.402 Period 6 0.746 0.705 0.711 0.665 Period 7 Period 8 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.923 0.853 0.789 0.731 0.837 0.766 0.703 0.820 0.744 0.676 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.263 0.225 0.194 Period 9 0.914 0.645 0.592 0.500 0.424 0.361 0.308 Period 10 0.905 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.237 0.195 0.162 0.135 0.585 0.527 0.557 0.497 Period 12 0.887 0.788 0.701 0.625 0.397 0.429 0.350 0.287 0.319 0.290 0.229 0.182 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065
$1 1 ta gas 00 vir ap Reference Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 possible - X int(s) possible 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0.552 0.516 0.482 0.519 0.476 0.437 0.402 0.961 0.924 0.888 0.855 0.951 0.906 0.863 0.822 0.823 0.792 0.784 0.747 0.735 0.681 0.621 0.567 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.914 0.837 0.905 0.820 0.744 0.896 0.804 0.722 0.195 0.162 0.135 0.168 0.137 0.112 0.887 0.942 0.888 0.837 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.073 0.051 0.037 0.026 0.038 0.024 0.016 0.010 0.020 0.012 0.007 0.004 0.879 0.870 0.861 0.743 0.642 0.820 0.673 0.554 0.456 0.555 0.481 0.377 0.295 0.312 0.215 0.233 0.146 0.149 0.104 0.092 0.059 0.780 0.610 0.478 0.375 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 he nearest whole dollar.) boal? (Round your answer to th e end of each year for 20 yea
ns 8. ed of SV DO es ra Reference Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Future Value of $1 1.020 1.030 1.041 1.051 1% 2% 3% 4% 5% 6% 8% 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.040 1.061 1.082 1.103 1.124 1.166 1.061 1.093 1.125 1.158 1.191 1,260 1.082 1,126 1.170 1.216 1.262 1.360 1.217 1.104 1.159 1.276 1.338 1.469 1.340 1.419 1.587 1.407 1.504 1.714 1.594 1.851 1.062 1.126 1.194 1.265 1.072 1.149 1.230 1.316 1.083 1.172 1.267 1.369 1.477 1.094 1.195 1.305 1.423 1.551 1.689 1.999 1.105 1.219 1.344 1.480 1.629 1.791 2.159 1.116 1.243 1.384 1.539 1,710 1.898 2.332 1.127 1.268 1.426 1.601 1.796 2012 2.518 1.138 1.294 1.469 1.665 1.886 2.133 2720 1.149 1.319 1.513 1.732 1.980 2.261 2.937 1.161 1.346 1.558 1.801 2.079 2.397 3.172 20% 10% 12% 14% 16% 18% 1.100 1.120 1.140 1.160 1.180 1.200 1.210 1.254 1.300 1.346 1.392 1.440 1.331 1.405 1.482 1.561 1.643 1.728 1.464 1.574 1.689 1.939 1.811 1.611 1.925 2.100 1,762 1.974 1.772 2.195 2.436 2.826 3.185 1.949 2.211 2.502 2.853 3.278 2.144 2.476 2.074 2.288 2.488 2.700 2.986 3.583 3.759 4.300 2.358 2.773 3.252 3.803 4.435 5.160 2.594 3.106 3.707 4411 5.234 6.192 2.853 3.479 4.226 5.117 6.176 7.430 3.138 3.896 4.818 5.936 7.288 8.916 3.452 4.363 5.492 6.886 8.599 10.699 3.797 4.887 7.988 10.147 12.839 6.261 7.138 4.177 5.474 9.266 11.974 15.407 sible possible parest whole dollar) (Round your answer to the nearest d of each year for 20 years? (Rouns Submit t
ns ec of 0 Reference Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.125 1.158 1.191 1.170 1.216 1.262 1.331 1.405 1.482 1.561 1.464 1.574 1.689 1.811 1.611 1.762 sible - X possible 1.030 1.061 1.093 1.643 1.728 1.041 1.082 1.126 1.260 1.360 1.276 1.338 1.469 1.939 2.074 1.051 1.104 1.159 1.217 2.288 2.488 2.986 1.062 1.126 1.194 1.265 1.340 1.419 1.925 2.100 2.195 2,436 2.700 2.502 2.853 1.072 1.149 1.230 1.316 1.587 1.772 1.974 1.714 1,949 2.211 1.851 1.407 1.504 2,826 3.185 3.583 1.083 1.172 1.267 1.369 1.477 1.594 3.278 3.759 4.300 2.144 2.476 2.773 2.358 1.094 1.195 1.305 1,423 1.551 1.689 1.999 3.252 3.803 4.435 5.160 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4411 5.234 6.192 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 5.936 7.288 8.916 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 4.818 5.492 6.261 10.699 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.886 8.599 7.988 10.147 12.839 15.407 9.266 11.974 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 1.220 1.486 1.806 2191 3.207 2.653 6.727 9.646 13.743 19.461 27.393 1.282 1.641 2.094 2.666 3.386 4.292 38.338 4.661 6.848 10.835 17.000 26.462 40.874 62.669 95.396 10.063 17.449 29.960 50.950 85.850 143.371 237.376 1.348 1.811 2.427 3.243 4.322 5.743 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Sub earest whole dollar) (Round your answer to the d of each year for 20 years
Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 12% 14% 16% 18% Period 1 0.990 0.980 0.971 0.962 0.952 6% 8% 10% 0.862 0.847 0.943 0.926 0.909 0.893 0.877 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 2.723 2.673 2.577 2.487 2.402 2.322 2.246 Period 2 1.970 1.942 1.913 1.886 Period 3 2.941 2.884 2.829 2.775 2.174 Period 4 3.902 3.808 3.717 2.690 3.630 4.580 4.452 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.329 4.212 3.993 3.791 3.605 3.433 Period 5 4.853 4.713 3.274 3.127 Period 6 5.795 5.601 5.417 5.242 3.498 Period 7 6.728 6.472 6.230 6.002 3.812 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 3.889 3.685 5.076 4.917 4.623 4.355 4.111 5.786 5.582 5.206 4.868 4.564 4.288 4.039 5.747 5.335 4.968 4.639 6.247 5.759 5.328 4.946 6.710 6.145 5.650 5.216 4.344 4.078 Period 9 8.566 4.607 4.303 8.162 7.786 7.435 8.983 8.530 8.111 7.108 6.802 7.722 7.360 Period 10 9.471 4.833 4.494 Period 11 10.368 8.306 7.887 6.495 5.938 5.453 5.029 4.656 9.787 9.253 8.760 10.575 9.954 9.385 Period 12 11.255 8.863 8.384 6.814 6.194 7.103 6.424 5.842 5.660 5.197 4.793 5.342 4.910 Period 13 7.139 7.536 7.904 8.244 7.367 6.628 6.002 8.559 7.606 6.811 11.348 10.635 9.986 9.394 8.853 12.106 11.296 10.563 9.899 9.295 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 12.134 13.004 Period 14 5.468 5.008 6.142 5.575 5.092 - X 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 int
Reference Period 3 2.246 2.174 2.106 2.941 3.902 3.808 Period 4 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.914 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.329 4.212 3.993 3.791 3.605 3.433 4.580 4.452 2.798 2.690 2.589 Period 5 4.853 4.713 3.274 3.127 2.991 Period 6 5.795 5.601 5.076 4.917 3.889 3.685 3.498 3.326 5.417 5.242 6.230 6.002 Period 7 6.728 6.472 4.623 4.355 4.111 5.206 4.868 4.564 4.288 4.039 5.747 5.335 4.968 4.639 3.812 3.605 Period 8 7.652 4.344 4.078 3.837 Period 9. 8.566 4.303 4.031 6.247 5.759 5.328 4.946 4.607 7.360 6.710 6.145 5.650 5.216 4.833 Period 10 9.471 4.494 4.192 10.368 4.656 5.786 5.582 7.325 7.020 6.733 6.463 6.210 8.162 7.786 7.435 7.108 6.802 7.722 8.983 8.530 8.111 8.306 7.887 8.863 8.384 9.394 8.853 9.899 9.295 10.380 9.712 8.559 4.327 Period 11 Period 12 11.255 5.197 4.793 4.439 9.787 9.253 8.760 10.575 9.954 9.385 11.348 10.635 9.986 12.106 11.296 10.563 12.849 11.938 11.118 Period 13 7.139 6.495 5.938 5.453 5.029 7.536 6.814 6.194 5.660 7.904 7.103 6.424 8.244 7.367 6.628 12.134 5.842 5.342 4.910 4.533 Period 14 13.004 6.002 5.468 5.008 4.611 Period 15 13.865 5.092 7.606 6.811 6.142 5.575 4.675 Period 20 18.046 5.929 5.353 4.870 Period 25 22.023 6.097 5.467 4.948 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 4.979 6.233 5.548 4.997
Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 10% 1.000 1.000 1.000 1.000 6% 8% 1.000 1.000 2.050 2.060 2.080 1.000 1.000 1.000 2.100 2.120 2.010 2.020 2.040 2.030 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 7.434 7.214 7.662 7,898 8.142 8.394 8.923 10.089 9.487 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 14.487 15.937 17.549 10.462 10.950 11.464 12.006 11.567 12.169 12.578 13.181 12.808 13.486 14.207 14.972 16.645 18.531 20.655 14.192 15.026 15.917 16.870 18.977 21.384 24.133 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 12.683 13.412 Print Done Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 12% 14% 16% 18% 1.000 1.000 1.000 2.140 2.160 2.180 3.440 3.506 3.572 4.921 5.066 5,215 6.610 6.877 7.154 8.536 8.977 9.442 11.414 10.730 12.142 13.233 14.240 15.327 17.519 19.086 16.085 19.337 21.321 23.521 23.045 25.733 28.755 27.271 30.850 34.931 36.786 42.219 32.089 37.581 43.672 50.818 43.842 51.660 60.965 - X Ossi 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035
Reference Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 3.440 3.506 3.572 3.640 3.184 3.246 4.375 5.637 5.867 3.310 3.374 4.506 4.641 4.779 4.921 5.066 5.215 3.030 3.060 3.091 3.122 3.153 4.060 4.122 4.184 4.246 4.310 5.309 5.416 5.526 6.802 7.662 7.898 8.142 5.368 5.101 5.204 6.105 6.353 6.610 6.877 7.154 7.442 6.152 6.308 6.468 6.633 7.716 8.115 8.536 8.977 9.442 9.930 7.214 7.434 11.414 12.142 12.916 8.286 7.336 8.923 9.487 10.089 10.730 13.233 16.085 19.337 21.321 23.521 14.240 15.327 16.499 9.369 17.519 19.086 20.799 10.462 25.959 23.045 25.733 28.755 32.150 6.975 8.394 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 27.271 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 21.495 24.523 28.029 32.089 13.809 14.680 15.618 16.627 17.713 18.882 43.672 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 37.581 43.842 51.660 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 91.025 115.380 45.762 57.275 72.052 249.214 342.603 471.981 73.106 98.347 133.334 181.871 34.931 39.581 30.850 36.786 42.219 48.497 50.818 59.196 60.965 72.035 146.628 186.688 22.019 24.297 26.870 29.778 28.243 32.030 36.459 41.646 34.785 40.568 47.575 56.085 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7.343.858 33.066 36.786 47.727 54.865 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882
Scenario 1. Daniel just hit the jackpot in Las Vegas and won $45,000t If he invests it now, at a 10% interest rate, how much will it be worth in 20 years? (Round your answer to the nearest whole dolar) Future valun Scenario 2. Donald would like to have $3,500,000 saved by the time he retires in 30 years. How much does he need to invest now at a 10% interest whole dollar) a fund his retirement goal? (Round your answer to the nearest Present value Scenario 3. Assume that Nancy accumulates savings of $1 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for 20 years? (Round your answer to the nearest whole dollar and enter as a positive amount.) Amount able to withdraw Scenario 4. Ivana plans to invest $6,000 at the end of each year for the next seven years. Assuming a 10% interest rate, what will her investment be worth seven years from now? (Round your answer to the nearest whole dollar) Futurn value
Future value Scenario 5. Assuming a 6% interest rate, how much would Marisa have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years? (Round your answer to the nearest who dola) Present value find the NPV of the investment (Round your answer to t nearest whole Scenario 6. Darren is considering a capital investment that costs $525.000 and will provide the cash inflows for three years. Using a hunder dollar Use parentheses or a minus sign to represent a negative NPV) Net Present Value (NPV) Scenario 7. What is the IRR of the capital investment described in Question 6? The IRR is the interest rate at which the investment NPV 0. We tried 8% in question 6, now we'll try 10% and calculate the NPV. (Round your anewer to the nearest whole dolar Use parentheses or a minus sign to represent a negative NPV) Net Present Value (NPV) The IRR for the project is