80.2K

Verified Solution

Link Copied!

Solve various time value of money scenarios Click the icon to view the scenarios.) Click the icon to view the present value of $1 table) Click the icon to view the future value of $1 table) Click the icon to view the present value of annuity of $1 table) Click the icon to view the future value of annuity of $1 bie) Scenario 1. Eddie just hit the jackpot in Las Vegas and won 545,000 if he invests it now at a 12% interest rate how much wil it be worth in 20 years? (Round your awer to the nearest whole dolar) Future values Scenario 2. Jack would like to have $2,500,000 saved by the time he retires in 40 years. How much does he need to invest now at a 14% interest rate to fund his retirement goal? (Round your answer to the nearest whole dar) Present value -5 Scenario 3. Assume that Stephanie accumulates savings of $2 million by the time she retires. If she invests this savings at 12%, how much money wil she be able to withdraw at the end of each year for 20 years? (Hound your answ to the nearest whole dollar and other as a positive amount.) Amount able to withdraw $ Scenario 4. Jessica plans to invest $4.500 at the end of each year for the next eight years. Assuming a 10% interest rate, what wil her investment be worth eight years from now?Round your answer to the nearest whole dar) Future values Scenario 5. Assuming a 12% Interest rate how much would Amanda have to invest now to be able to withdraw $12.000 at the end of every year for the next ten years? (Round your answer to the nearest whole dar) Present value - Scenario & Sammy is considering a c o ntrato $520.000 and will provide show gaudefond the NPV of the Round your ow n NPV now we'll try 10% and calculate the NPV. Round your answer to the whole se press or Scenario T. What is the IRR of the capital investment desorbed in Question 67 The IRR is the interest rate at which the investment NPV = 0. We tried ein Gestion negative NPV) Net Present Value (NPV) - The for the project is En n umber in the edited and then continue to the next question * More Info 1. Eddie just hit the jackpot in Las Vegas and won $45,000! If he invests it now at a 12% interest rate, how much will it be worth in 20 years? 2. Jack would like to have $2,500,000 saved by the time he retires in 40 years. How much does he need to invest now at a 14% interest rate to fund his retirement goal? 3. Assume that Stephanie accumulates savings of $2 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? 4. Jessica plans to invest $4,500 at the end of each year for the next eight years. Assuming a 10% interest rate, what will her investment be worth eight years from now? 5. Assuming a 12% interest rate, how much would Amanda have to invest now to be able to withdraw $12,000 at the end of every year for the next ten years? 6. Sammy is considering a capital investment that costs $520,000 and will provide the following net cash inflows: Year 1... 2... 3........ Net Cash Inflow $298,000 $200,000 $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? Reference 0 Reference Present Value of Amulyo 11 3.52 G.BR 112730 2 0 25 2.700 .300 .30 MBM 9.09.18.253780470 12.100 11201000 9 24824 105 1655311488374 0 221531741315832142 108 OPT 153 8 . 49104 5.00 .57 TO 051004 03 0295 0213 0 S A 22 27251 3 by sd i Reference enad pres futu Future Value of $1 Periods 8% 10% T 12% 54% 16% est 10.80 2% 1,020 1.040 1061 1.082 1.104 1.126 5% 1.050 1.103 1.158 1.216 1 276 1.060 1.124 1.191 1.262 1339 1.166 1260 1.100 1210 1.331 1.464 1.611 18% 1.180 1.392 1.643 1.939 2288 1360 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2853 ros 2.700 1.149 1.419 1.504 1.594 1.160 1.346 1.561 1.811 2.100 2436 2.826 3278 3.803 4411 3.185 3.759 mga 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1220 1.282 1.348 1.489 1.772 1.949 2.144 2.358 2.594 3.252 no 1.030 1.061 1.093 1.126 1.159 1.194 1230 1.267 1.305 1.344 1.384 1426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1 369 1.423 1.480 1.539 1.601 1665 1.732 1.801 2.191 2666 3.243 4.801 1689 1.791 1.120 1.254 1.405 1.574 1.762 1.974 2211 2478 2.773 3.106 3.479 3.896 4.363 4887 5.474 9.646 17.000 29.960 9 3.051 4.435 5.234 6.176 1.172 1.195 1.219 1.243 1.268 1294 1.319 1.346 1.486 1.641 1.811 2.208 OS 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4322 7.040 7288 20% 1.200 1.440 1.728 2.074 2488 2.986 3.583 4.300 5.160 6.192 7430 8.916 10.699 12.839 15.407 38.338 95 396 237.376 1.469.772 the 1 898 2012 2.133 2261 2.397 3207 4.292 5.743 10.286 2937 3.172 3.707 4.226 4.818 5.492 6.261 7.138 13.743 28.462 50 950 188.884 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 mich 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 8.599 10.147 11.974 4,661 6.848 10.063 21.725 27.393 62.669 143.371 750.378 Print Done elds i Reference Periods 3% 14% 18% 2.180 WN 5.204 6.610 1% 2% 1.000 1.000 1.000 2.010 12.020 2.030 3.030 3.060 3.091 4.060 4.122 4.184 5.101 5.309 6.152 6.308 6.468 7.214 7434 7.662 8.286 8.583 8892 9.369 9.755 10.159 10.462 10.950 11.464 11.567 12.169 12.80B 12.683 13.412 14.192 13.809 14.680 15.618 14.947 15.974 17.086 16.097 17293 18.599 22.019 24 297 26.870 28.243 32.030 36.459 34.785 40.568 47.575 48.88660.40275401 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3246 3.310 4.310 4 375 4.506 4.641 5.526 5637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9549 9897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33.066 38 786 45.762 57 275 47.727 54 865 73.106 98.347 66 429 79.058 113.283 164.494 120.800 154.762 259.057 442.593 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241,333 767.091 16% 1.000 2.140 3.440 3.506 4.921 5.066 6.877 8.536 8.977 10.730 11.414 13 233 14.240 16.085 17.519 19.337 21.321 23.045 25.733 27.271 30.850 32.089 36.786 37.581 43.672 43.842 51.660 91.025 115.380 181.871 249.214 356.787 530.312 1,342.025 2,360.757 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50 818 60.965 146.628 342.603 790.948 4,163 213 20% 1.000 2.200 3.640 5.368 7.442 9.930 12916 16.499 20.799 25.959 32.150 39.581 48 497 59.196 72035 186688 471.981 1,181.882 7.343.858 Print Done

Answer & Explanation Solved by verified expert

See Answer