1. Consider the following finite set of annual cash flows.

0 1 2 3 4 5 years

|--------------- |---------------- |---------------- |---------------- |----------------- |

$1500 $7500. $1200. $1200 - $4800

Assume a required rate of return (interest rate, discount rate) of 10% per year, compounded annually.

What is the total present value (PV) of this set of cash flows?

2. Consider the following set of finite set of quarterly cash flows.

0 1 2 3 4 5 years

|--------------- |---------------- |---------------- |---------------- |----------------- |

$1500 $1500. $2100. $1100 $2275

Assume a required rate of return (interest rate, compounding rate) of 9% per year, compounded quarterly.

What is the total present value (PV) of this set of cash flows?

3. Consider the following set of finite set of semi-annual cash flows.

0 1 2 3 4 5 years

|--------------- |---------------- |---------------- |---------------- |----------------- |

$221 $0 $175. - $100 $100

Assume a required rate of return (interest rate, compounding rate) of 4% per year, compounded semi-annually.

What is the total present value (PV) of this set of cash flows?