10( _ X X Reference Reference Present Value 5181 Present ValueOIOrdinaryArinuiiy 0131 Periods 1% 2% 3% 4% 5% 6% 7% 6% 9% 10% 12% 14% 15% 16% Periods 1% 2% 4% 5% 6% 7% 6% 8% 10% 12% 14% 15% 11 Period 1 0 660 D886 6 671 D 862 6.652 0 843 D 835 D 826 D 817 0.868 6 683 0.877 0.870 0 662 _ Period 1 0 990 D 986 0 862 D 952 0 843 0 835 0 826 D 917 D 909 D 683 D 977 0 87D 01 Period 2 0 960 D 961 D 943 D 925 D 907 0 890 D 873 D 657 D 842 0 826 D 787 0 768 0 756 0 743 Period 2 1970 1 942 1 866 1 659 1 833 1 868 1 763 1 759 1736 1 696 1 647 1 626 1 1 Period 3 0 971 D 942 D 915 D 686 D 664 0 840 D 816 D 784 D 772 0 751 D 712 0 675 0 656 0 641 Period 3 2 941 2.684 2 775 2723 2 673 2 624 2.577 2 531 2487 2 402 2.322 2.263 21 Period 4 0 961 D 824 D 686 D 955 D 623 0 792 D 763 D 735 D 706 0 663 D 636 0 592 0 572 0 552 Period 4 3 962 3 606 3 630 3546 3 465 3 367 3 312 3 246 3176 3 D37 2 914 2 855 2 1 Period 5 0 951 D 906 D 663 D 622 D 784 0 747 D 713 D 681 D 65D 0 621 D 567 0 518 0 497 0 476 r Period 5 4 653 4.713 4 452 4 326 4 212 4160 3.863 3 686 3781 3 605 3.433 3.352 31 Period 6 0 942 D 686 D 637 D 786 D 746 0 765 D 666 D 636 D 586 0 564 D 507 0 456 0 432 0 410 Period 6 5 795 5 601 5 242 5676 4 817 4 767 4 623 4 486 4 355 4111 3 686 3 764 3 1 Period 7 0 933 D 871 D 613 D 766 0 711 0 665 D 623 D 583 D 547 0 513 D 452 0 460 0 376 0 354 Period 7 6 728 6.472 6 0D2 5786 5 562 5 368 5.266 5 D33 4 666 4 564 4.286 4.16D 41 Period 6 0 623 D653 D 786 D 731 6.677 0 627 D 582 D 546 D 502 0.467 D 404 0.351 0.327 0 365 Period 6 7 652 7 325 6 733 6 463 6 210 5 871 5 747 5 535 5335 4 966 4 639 4 467 4 ( Period 9 0 914 D 637 D 766 D 703 D 645 0 592 D 544 D 50D D 46D 0 424 D 361 0 368 0 264 0 263 Period 9 8 566 6162 7 435 7106 6 862 6 515 6 247 5 685 5759 5 326 4 946 4 772 4 1 Period 10 0 6D5 D626 D 744 D 676 6.614 0 558 D 506 D463 D 422 0.366 6 322 0.270 0.247 0 227 Period 10 8 471 6 983 8111 7 722 7 360 7 024 6 710 6416 6145 5 656 5 216 5 019 41 Period 11 0 666 D 604 D 722 D 656 D 585 0 527 D 475 6429 D 386 0 350 D 287 0 237 0 215 0165 Period 11 10.368 6.787 8 760 6306 7 867 7 468 7.138 6 605 6 485 5 936 5.453 5.234 51 Period 12 0 667 D786 D701 D625 6 557 0497 D444 D387 D356 0318 D 257 0208 0167 0168 Period 12 11255 10575 8365 6 663 8364 7843 7536 7161 6 614 6184 5666 5421 5 ' Period 13 0 678 D 773 D 681 D 601 D 536 0 468 D 415 D 366 D 326 0 290 6229 0162 0163 0145 Period 13 12.134 11.346 8 866 6 384 8 853 8 358 7.864 7487 7103 6424 5.642 5.563 51 Period 14 0 670 D756 6 661 D 577 6.505 0 442 D 386 D 346 D 286 0.263 6205 0.160 0.141 0125 1 Period 14 13 064 12106 11296 10 563 9 689 8 295 8 745 8 244 7 786 7 367 6 626 6 D02 5 724 51 Period 15 0661 D743 D642 D555 6481 0417 D362 6315 D275 0238 6.183 0140 0123 01D8 Period 15 13865 12648 11936 11118 10 360 9712 9168 8559 6D61 7606 6811 6142 5847 55 Period 16 0653 D726 D623 D534 6456 0394 D339 D282 D252 0218 6163 0123 0107 0693 Period 16 14718 13578 12 561 11652 10 638 16106 8447 8851 6313 7624 6974 6265 5854 51 Period 17 0 644 D 714 D 605 D 513 D 436 0 371 D 317 D 276 D 231 0198 6146 0168 0 093 0 660 Period 17 15.562 14.282 13166 12166 11274 1D477 8 763 8.122 6 544 6622 7126 6.373 6.047 5 1 Period 16 0 636 D706 6 587 D484 6.416 0 350 D 286 D 256 D 212 0.160 6130 0.095 0.061 0 668 Period 16 16 398 14 692 13 754 12 658 11686 16 626 1D 059 8 372 6 756 6201 7 256 6467 6129 51 Period 18 0628 D686 D576 D475 6386 0331 D277 D232 D184 0164 0116 0063 007D 0660 Period 19 17226 15678 14 324 13134 12665 11 158 1D336 8664 9956 6365 7366 6556 6196 51v Period 20 0620 D673 6554 D456 6377 0312 D256 D215 D176 0149 6104 0073 0061 0651 V y Reference Reference Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5. Period 12 0.887 0.788 8 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 6.628 6.002 5.724 54 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0. 182 0. 163 0.145 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.811 6.142 5.847 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0. 160 0. 141 0.125 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.6 5.7 Period 16 0.853 0.728 0.623 0.534 4 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0. 107 0.093 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.8 Period 17 0.844 0.714 0.605 0.513 0.436 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 6.198 5.8 Period 19 8.365 7.366 6.550 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0 |0.116 0.083 0.070 0.060 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.9 6.359 6.( Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0. 164 0.135 0.093 0.064 0.053 0.044 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.( Period 22 0.803 0.647 |0.522 0.422 0.342 0.278 0.138 0.112 0.074 0.049 0.040 0.033 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.( Period 23 0.795 0.634 |0.507 0.406 0.326 0.262 0.211 0.170 9.077 7.843 6.873 6.464 6.0 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 Period 26 22.795 20. 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 6.906 6.491 6. Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 Period 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.' 7.984 6.961 6.534 6.' Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0. 161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 Period 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.022 6.983 6.551 6.' Period 28 0.757 0.574 0.437 0.333 0.255 0. 196 0. 150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.055 |7.003 6.566 Period 29 0.749 0.563 0.424 0.321 0.243 0. 185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 Period 30 0.742 0.552 0.412 0.308 |0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 0.015 0.012 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6 ' Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 | 0.022 0.011 0.005 |0.004 0.003 Period 50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 6.2 - Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 |0.001 Print Done Print DoneYour 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. $7,400 per year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $98, 150 (lump sum) eight 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. Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Scenario 1, 8% discount rate, Present value = Scenario 2, 8% discount rate, Present value = Scenario 3, 8% discount rate, Present value = 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 of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Scenario 1, 10% discount rate, Present value = Scenario 2, 10% discount rate, Present value = Scenario 3, 10% discount rate, Present value =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. $7,400 per year at the end of each of the next eight years 2. $49,950 (lump sum) now 3. $98,150 (lump sum) eight 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 1, 8% discount rate, Present value = Scenario 2, 8% discount rate, Present value = Scenario 3, 8% discount rate, Present value = 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 of each scenario using a 10% discount rate. (Round the factors to three decimal places, X.XXX. Round the present value to the nearest whole dollar.) Scenario 1, 10% discount rate, Present value = Scenario 2, 10% discount rate, Present value = Scenario 3, 10% discount rate, Present value = appears to be the best option. Based on a 10% interest rate, its present value is the