4) What is the present value of the following cash flows at a discount rate of 9 percent? Year 1 Year 2 Year 3 $ 102,000 $ 152,000 $ 202,000 A) $377,494.40 B) $456,000.00 C) $411,950.68 D) $418,844.04 5) What is the net present value (NPV) of the following sequence of cash flows at a discount rate of 9 percent? t = 0 t = 1 t = 2 t = 3 $ 255,000 $ 105,000 $ 155,000 $ 205,000 A) $130,088.29 B) $205,000.00 C) $164,566.92 D) $186,763.89 6) You would like to have enough money saved to receive a $59,000 per year perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8 percent. A) $1,180,000 B) $796,500 C) $737,500 D) $590,000 7) What is the present value of a $1,320 per year annuity for five years at an interest rate of 12 percent? A) $8,388.83 B) $4,758.30 C) $732.22 D) $3,534.27 8) Mila Cabellero has taken a 20-year, $252,000 mortgage on her house at an interest rate of 6 percent per year. What is the remaining balance (or value) of the mortgage after the payment of the fifth annual installment? A) $129,987.19 B) $213,383.05 C) $142,156.38 D) $250,707.02 9) At an interest rate of 10 percent, which of the following sequences of cash flows should you prefer? Year 1 Year 2 Year 3 A $ 500 $ 300 $ 100 B 100 300 500 C 300 300 300 D Any of the above as they all add up to $900