13. Assuming a discount rate of 6% p.a., but with monthly compounding, the present value of $1000 to be received exactly ten years from today is __________. a. $551.82 b. $558.39 c. $568.27 d. $553.68 a. None of the answers listed above is within $0.10 of the correct answer

19. Assume that the interest rate is equal to zero (i.e., 0%). Which of the following cash-inflow streams totaling $1,500 would you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively. a. $700 in Year 1; $500 in Year 2; $300 in Year 3 b. $300 in Year 1; $500 in Year 2; $700 in Year 3 c. $500 in Year 1; $500 in Year 2; $500 in Year 3 d. $0 in Year 1; $0 in Year 2; $1400 in Year 3 e. Any of the above, since they each sum to $1,500.

20. Which of the following will increase the future value of the mixed cash flows for years 1 through 5 of $9,000; $4,000; $1,000; $5,000; and $2,000 respectively given a 10% discount rate? (There may be more than one correct answer for this question; you MUST enter all of the correct answer choices, and only the correct answer choices, to receive any credit that is, this is an all or nothing question). a. Increase the discount rate by 2%. b. Switch cash flows for years 1 and 5 so that year 1 is $2,000 and year 5 is $9,000. c. Switch cash flows for years 2 and 4 so that year 2 is $5,000 and year 4 is $4,000. d. Switch cash flows for years 2 and 5 so that year 2 is $2,000 and year 5 is $4,000. e. Switch cash flows for years 3 and 4 so that year 3 is $5,000 and year 5 is $1,000. f. Decrease the discount rate by 2%.