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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. 57.750 per year at the end of each of the next seven years 2. 548,750 (lump sum) now 3. 598,500 (lump sum) seven years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of 51 table.) Read the requirements Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? (Round the facto nearest whole dollar) 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 12% discount rate? Compute the present value of each scenario using a 12% discount rate (Round the factors to three decimal places, XXXX Round the present value to the Enter any number in the edit fields and then continue to the next question 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. $7,750 per year at the end of each of the next seven years 2. $48,750 (lump sum) now 3. 598,500 (lump sum) seven years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements 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 12% discount rate? Compute the present value of each scenario using a 12% discount rate. (Round the factors to three decimal places, XXXX. Round the present value to Present Value Scenario 1 Scenario 2 Scenario 3 appears to be the best option Based on a 12% Interest rate its present value is the Enter any number in the edit fields and then continue to the next question Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 1 0 .990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.893 0.877 0.870 0.862 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.8570.842 0.826 0.797 0.769 0.756 0.743 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.7940.772 0.751 0.712 0.675 0.658 0.641 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.942 0.8880.837 0.790 0.746 0.705 0.6660.630 0.596 0.564 0.507 0.456 0.432 0.410 0.871 0.813 0.7600.711 0.665 0.623 0.5830.547 0.513 0.452 0400 0.376 0.354 0.923 0.853 0.789 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.4040.351 0.327 0.305 0.914 0.837 0.766 0.703 0.545 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0227 11 0.896 0.8040.722 0.650 0.585 0.527 0.475 0.429 0.3880.350 0.287 0237 0.215 0.195 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 13 0.879 0.773 0681 0.601 0.530 0.46904150368 0.3260 290 0.229 0.182 0.163 0.145 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.1600.141 0.125 5 Innen EEE 2017 III 76 In III con Periods 1 0 0.84 1.56 WN 2.11 268 31: Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% .990 0.9800.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.893 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 2.9412.884 2.829 2.775 2723 2.673 2624 2.577 2531 2.487 2.402 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.3123.240 3.170 3.037 4.853 4.713 4.580 4.452 4.3294212 | 4.100 3.9933.890 3.791 3.606 5.795 5.601 5.417 5.2425.076 4.917 4.767 4.623 4.486 4.355 4.111 6.7286 .4726.230 6.0025 .786 5.582 5.389 5.206 5.033 4.868 4.564 7.652 7.325 7,020 6.733 6.463 6.210 5.971 5.7475.535 5.335 4.968 8,566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 9.471 8.9838.530 8.1117.722 7.360 7.024 6.710 6.418 6.145 5.650 10.368 9.787 9.2538.760 8.3067.887 7.499 7.139 6.8056.495 5.938 11.255 10.575 9.954 9.3858.863 8.384 7.9437.536 7.1616.814 6.194 12.13411.348 10.6359.986 9.394 8.853 8.358 7.9047.487 7.103 6.424 ten ENTRE 17 nellen 14% 15% 0.877 0.870 1.647 1.626 2.322 2.283 2.914 2.855 3.433 3.352 3.889 3.784 4.288 4.160 4.639 4.487 4.946 4.772 5.216 5.019 5.453 5.234 5.660 5.421 5.8425.583 16% 0.862 1.605 2.246 2798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 3.45 8 4.07 11 Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (y 1. $7,750 per year at the end of each of the next seven years 2. $48,750 (lump sum) now 3. 598,500 (lump sum) seven years from now (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table) Read the requirements Scenario 3: appears to be the best option. Based on an 8% interest rate, its present value is the highest Requirement 2. Would your preference change if you used a 12% discount rate? Compute the present value of each scenario using a 12% discount rate. (Round the factors to thre hidest X.XXX. Round the lowest Present Value Scenario 1 Scenario 2 Scenario 3. appears to be the best option. Based on a 12% interest rate its present value is the highest Enter any number in the edit fields and then continue to the next

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