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3. (20pts) a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 2 3 4 5

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3. (20pts) a. What is the present value of the following set of cash flows, discounted at 10% per year? Year 2 3 4 5 CF 10 20 30 40 SO b. What is the present value of the following set of cash flows, discounted at 10% per year? Year 1 2 3 4 5 CF 50 40 30 20 10 c. Each set contains the same cash flows (10, 20, 30, 40, 50), so why is the present value different

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