olve various time value of money scenarios (Click the icon to view the scenarios
ID: 2806397 • Letter: O
Question
olve various time value of money scenarios (Click the icon to view the scenarios,) Click the icon toview the present value of $1 table (Click the icon to view the present value o annuity of $1 table (Click the icon to view the future value of S1 table.) Click the icon to vewthefuure value of annuity of SI table) Scenario 1. Irving ust hit the ackpot in Las Vegas and won $35,000 If he invests it now at a 10% interest rate, how much will it be worth n 20 years? Round your answer to the nearest hole dollar Future value S Scenario 2 Forest would like to have $4,000,000 saved by the time he retires in 30 years How much does he need to invest now at a 12% nterest rate to und his retirement goan Round your answer to the nearest whole dollar.) Present value $ Scenario 3. Assume that Tina accumulates savings of $1 million by he 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 or 15 years? (Round your answer to the nearest whole dollar and enter as a positive amount) Amount able to withdraw = $ Scenario 4. Geena plans to invest $3,500 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? (Round your answer to the nearest whole dollar.) Future value - how much would Vanna have to invest now to be able to withdraw S1 000 at e end o ever rer or he t en Round our answer to the nearest whole ear Scenario 5 Assuming a 10% interest rate dollar) Present value Scenario 6. Chuckie is considering a capital investment that costs $500.000 and will provide net cash nflows fr ree years Using a hurdle rate of 12%, find the NPV of the investment (Round your answer to the nearest whole dollar. Use parentheses or a minus sign to represent a negative NPV) Net Present Value (NPV) S Scenario 7. What is the IRR of the capital investment described in Question 6? The IRR is the interest rate at which the investment NPV-0 We tried 12% in question 6 now we'll try 14% and calculate the NPV Round your answer to the nearest whole dollar. Use parentheses or a minus sin to represent a negative NPV) Enter any number in the edit fields and then continue to the next question.Explanation / Answer
Future value formula; Future value= (1+ interest rate)^ no. of years. 1) Future value= 35000*(1+10%)^20=$ 235,462 2) Lets assume x= amount to be invested 4000000=x*(1+12%)^30; Solving for x will give x= $133,512 3) PMT(0.12%,15,-1000000)= $67,308 can be withdrawn each year. 4) FV(10%,8,-3500)=$ 40,026 is the future value of investment. Please raise another question for remaining part as per chegg policy.
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