1.If you are able to earn a 4% rate of return, what amount would you need to invest to have $15,000 one year from now? Question 1 options: $13,485. $14,423. $14,833. $14,400.

2.Present value is based on Question 2 options: all of these. the dollar amount to be received. the length of time until the amount is received. the interest rate.

3.If a single future amount of $7,000 is to be received in 4 years and discounted at 10%, its present value is Question 3 options: $4,200. $4,346. $5,861. $4,781.

4.Suppose you have a winning sweepstakes ticket and you are given the option of accepting $2,000,000 two years from now or taking the present value of the $2,000,000 now. The sponsor of the prize uses a 5% discount rate. If you elect to receive the present value of the prize now, the amount you will receive is Question 4 options: $1,814,060. $1,780,000. $1,869,160. $2,000,000.

5.Kang Company has just purchased equipment that requires annual payments of $50,000 to be paid at the end of each of the next 4 years. The appropriate discount rate is 15%. What is the present value of the payments? Question 5 options: $58,718. $187,668. $200,000. $142,749.