(Calculating the present value of annuities and complex cash flows) (Related to Checkpoint 6.6 on page 209) You are given three investment alternatives to analyze.

The cash flows from these three investments are as follows:

Assuming a 20 percent discount rate, find the present value of each investment.

Transcribed Image Text:

End of Year A B C 1 2 $10,000 $10,000 10,000 3 10,000 4 10,000 5 10,000 $10,000 6 10,000 50,000 7 10,000 8 10,000 9 10 10,000 10,000 10,000