What is present value of investment a at an annual discount

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Reference no: EM132775887

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

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?

Reference no: EM132775887

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