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2. What is the present value of the following set of cash flows if the discount rate is 11.5% per year? Year 0 1 2

2. What is the present value of the following set of cash flows if the discount rate is 11.5% per year?

Year 0 1 2 3 4

Cash Flow 5,000 outflow 900 inflow 0 3,500 inflow 2,500 inflow

a. $16.81 inflow

b. $268.37 inflow

c. $425.93 inflow

d. $50.44 outflow

e. $16.98 outflow

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