$1)$Calculate the present value of each cash flow using a discount rate of $7\%.$

A: Receive $$60$ in four years.

B: Receive a payment of $$7$ every year for $6$ years.

C: Receive $$6$ every year for fifteen years.

D: Receive $$100$ in fifteen years.

Which do you most prefer most and why?

$2.$ You are proposing to purchase a new earth$-$moving machine for $$1\mathrm{.}15$ million in $2$ or $3$

years. Your site manager would like you to let her know how much should be deposited

into an account that pays $5\mathrm{.}5\%$ annual interest if they want to have a $33\%$ deposit at the

time of purchase. The balance will be financed. What if the interest is $7\mathrm{.}9\%?$