1. Given an annual interest rate of 3%, which is true? a. $2000 per year for 10 years is preferred to $21,000 at time zero b. $21000 at time zero is preferred to $2000 per year for 10 years c. $21000 at time zero is preferred to $2000 per year for 30 years d. $2000 per year for 10 years is preferred to $31000 at time zero 2. Two four-year contracts are offered: payments starting at $0 in period 1 and increasing by $100,000 per year or a flat rate of $150,000 per year. At 10% annual interest, which is preferred? a. The fixed-rate contract, by less than $10,000 b. The fixed-rate contract, by over $10,000 c. The increasing-rate contract, by over $5,000 d. Both contracts are equivalent 3. A start-up firm has zero revenue in year 1, but it grows by $15,000 per period over the next five years. The present worth of these revenues, assuming 10% annual interest is most closely: a. $75,000 b. $102,600 c. $33,300 d. $145,300