2) Calculate the present value of the stream ofsavingsfor the followinginvestment opportunity:

Initial investment opportunity at start of Year 1: $13,000.00

Anticipated savings end of Year 1:$1000.00

Anticipated savings end of Year 2:$5000.00

Anticipated savings end of Year 3:$9000.00

For Present Value calculation, use a discount rate(aka Present Value Rate)= 8%

3)Same but savings of $5000.00 per year (every year)

For Present Value calculation, again use a discount rate = 8%

4)Same but savings of $9000.00 end of Year 1, $5000.00 end of Year 2, and $1000.00 end of Year 3.

For Present Value calculation, again use a discount rate = 8%

5)Since the present value (PV) of any $$ value at thestartof Year 1 = the original value, the PV of the initial investment= $13,000.00.