(1). Assume the annual interest/discount rate is 3%. Calculate the present value of a future dollar and fill in the table below (Note: Use two decimals numbers and don't round the values.).

Year Discount rate=3.0%

0 1.00

1

2

3

2.) An information system project takes $12K to develop and requires $2K to maintain its normal operation each year. The system generates $5K benefit each year since its operation. What is the projects net present value in 3 years?

year 0 year 1 year 2 year 3

Benefits

Benefits at Present Value

Accumulated Benefits at Present Value

Costs

Costs at Present Value

Accumulated Costs at Present Value

Net Present Value