15) The present value of a $20,000 perpetuity at a 7 percent discount rate is A) $186,915 B) $285,714 C) $140,000 D) $325,000 16) Find the present value of the following stream of cash flows assuming an opportunity cost of 14 percent. Year 1 2. 3 Amount STORIO 35,000 24,000 A) $59,169 B) $92,443 C) $81,090 D) $51,903 17) Find the present value of the following stream of cash flows assuming an opportunity cost of 25 percent. Year 1 2 3 Amount $5.000 25.000 14,000 A) $27,168 B) $33,960 C) $72,656 D) $41,674 18) Find the present value of the following stream of cash flows assuming an opportunity cost of 9 percent. Year Amount S1000 yyr. 16,00 6-10 A) $85,791 B) $187,838 C) $65,213 D) $79,345 Part III. Exercises and Problems (43 points) A. For each of the cases shown in the following table, calculate the present value of the cash flow, discounting the rate given and assuming that the cash flow is received at the end of the period noted. Case Single cash flow (5) Discount Rate End of Period Present Value 37.000 B 25.000 10 200 5 40.000 4.500 B. For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually ar the rate specified.. Case Single cash flow (5) Discount Rate End of Period Future Value A 8 D E 150.000 28.000 10.000 7.000 20 C. For each of the cases shown in the following table, calculate the present value of the annuity, assuming that it is (1) An ordinary annuity, (2) An annuity due. Case Amount of Annuity Interest Rate Deposit Period Ordinary Annuity Antity Dee 37,000 12 25,000 10 12 D 200 4.500 D. For each of the cases shown in the following table, calculate the future value of the annuity, assuming that it is (1) An ordinary annuity, (2) An annuity due. Case Amount of Annuity Interest Rate Deposit Period Ordinary Annuity Anmuity Due A 45,000 150,000 12 8 D 10,000 E) Ms. Day needs $20,000 to buy her dream car. In her search for the best (low cost) loan, she has gathered the following information from three local banks. Which bank would you recommend Ms. Day borrow from? Annual Payment Term Care Bank A B 6.3.15 5,41125