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2 . You expect to receive $ 1 0 0 , 0 0 0 in five years. Assume that the appropriate discount rate is 1

2. You expect to receive $100,000 in five years. Assume that the appropriate discount rate is 11%. a. What is the present value of this cash flow, discounted back to year 2? b. What is the present value of that present value, discounted back to year 0? c. What is the present value of the $100,000 cash flow in year 5, discounted back to year 0? d. How should the answer in question 2.c compare with the answer in question 2.b? Explain!

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