1. Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if:
A) your interest rate is 5%?
B) Same question, but your interest rate is 20%?
2. What is the present value of the following three year cash-flow stream if your interest rate is 6%.... Year 1 $200, Year 2 $400 Year 3 $300 ?