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(Present value of an uneven stream of payments?) You are given three investment alternatives to analyze. The cash flows from these three investments are as? follows:

End_of_Year A B C

1 $2,000 $1,000 $4,000

2 3,000 1,000 4,000

3 4,000 1,000 (4,000)

4 -5,000 1,000 (4,000)

5 5,000 3,000 14,000

a. What is the present value of investment A at an annual discount rate of 9 ?percent?

b. What is the present value of investment B at an annual discount rate of 9 ?percent?

c. What is the present value of investment C at an annual discount rate of 9 ?percent?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92371888

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