1: A project pays $5000 one year from now and then for the next three years the project cashflows grow by $1000. They cease after year 4. If the current market rate of interest is 8%, then the present value of this stream of cash flows is closest to:

Select one:

a. $22,871

b. $21,211

c. $24,074

d. $26,000

2:An annuity pays you GBP 500 per month for the next 18 months (with the first payment one month from now). If the 6 month interest rate is 6%, what is the present value of this stream of cash (to the nearest penny)?

Select one:

a.GBP 9,000.00

b.GBP 8,586.38

c.GBP 8,591.30

d.None of the above