Solve various time value of money scenarios. (Click the icon to view the scenarios) (Click the...

 

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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 table.) Scenario 2. Forest 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 14% interest rate to fund his retirement goal? (Round your answer to the nearest whole dollar) Present value = $ Scenario 3. Assume that Lilian accumulates savings of $1 million by the time she retires. If she invests this savings at 8%, 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 $3,000 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) Future value = $ Scenario 5. Assuming a 6% interest rate, how much would Penelope have to invest now to be able to withdraw $13,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar) Present value = $ Scenario 6. Sammy is considering a capital investment that costs $510,000 and will provide net cash inflows for three years. Using a hurdle rate of 10%, find the NPV of the investment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV) - 5 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 10% in question 6, now we'll try 12% and calculate the NPV. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV) = $ The IRR for the project is Enter any number in the edit fields and then continue to the next question. 1. Eddie just hit the jackpot in Las Vegas and won $50,000! If he invests it now at a 10% interest rate, how much will it be worth in 20 years? 2. Forest 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 14% interest rate to fund his retirement goal? 3. Assume that Lilian accumulates savings of $1 million by the time she retires. If she invests this savings at 8%, how much money will she be able to withdraw at the end of each year for 20 years? 4. Ivana plans to invest $3,000 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 Penelope have to invest now to be able to withdraw $13,000 at the end of every year for the next ten years? 6. Sammy is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Net Cash Inflow 1 $296.000 2 $206,000 3 $96,000 Using a hurdle rate of 10%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6? 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 table.) Scenario 2. Forest 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 14% interest rate to fund his retirement goal? (Round your answer to the nearest whole dollar) Present value = $ Scenario 3. Assume that Lilian accumulates savings of $1 million by the time she retires. If she invests this savings at 8%, 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 $3,000 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) Future value = $ Scenario 5. Assuming a 6% interest rate, how much would Penelope have to invest now to be able to withdraw $13,000 at the end of every year for the next ten years? (Round your answer to the nearest whole dollar) Present value = $ Scenario 6. Sammy is considering a capital investment that costs $510,000 and will provide net cash inflows for three years. Using a hurdle rate of 10%, find the NPV of the investment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV) - 5 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 10% in question 6, now we'll try 12% and calculate the NPV. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV.) Net Present Value (NPV) = $ The IRR for the project is Enter any number in the edit fields and then continue to the next question. 1. Eddie just hit the jackpot in Las Vegas and won $50,000! If he invests it now at a 10% interest rate, how much will it be worth in 20 years? 2. Forest 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 14% interest rate to fund his retirement goal? 3. Assume that Lilian accumulates savings of $1 million by the time she retires. If she invests this savings at 8%, how much money will she be able to withdraw at the end of each year for 20 years? 4. Ivana plans to invest $3,000 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 Penelope have to invest now to be able to withdraw $13,000 at the end of every year for the next ten years? 6. Sammy is considering a capital investment that costs $510,000 and will provide the following net cash inflows: Year Net Cash Inflow 1 $296.000 2 $206,000 3 $96,000 Using a hurdle rate of 10%, find the NPV of the investment. 7. What is the IRR of the capital investment described in Question 6?

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The computations have been done using Present Value PV Future Value FV PV Annuity and FV Annuity tab... View the full answer