Reference no: EM132718547

You are given three investment alternatives to analyze. The cash flows from these three investments are as? follows:

?(Present value of an uneven stream of payments?)

Investment            A                        B                       C

1                     $2,000             $3,000         $5,000

2                    3,000                 3,000             5,000

3                  4,000                   3,000               (5,000)

4                  (5,000)               3,000                (5,000)

5                  5,000                 5,000                    15,000

Problem 1: What is the present value of each of these three investments if the appropriate discount rate is 12 ?percent?

Problem 2: What is the present value of investment A at an annual discount rate of 12 ?percent?