1. Given: a cash flow of $200 occurring in year four, and annual interest rate is 12%. a. Calculate the present value of the cash flow if interest is calculated once a year. b. Calculate the present value of the cash flow if interest is calculated twice a year. c. Calculate the present value factor (numerical value) in part (b) Q1 Ans: 2. An investment produces a cash flow of $432 in year 1, $137 in year 2, and $800 in year 3. If the required rate of return is 15%, what price should you pay for the investment at time zero? Q2 Ans: