a). Betty just signed a contract that will provide her firm with cash inflows of $70,000 today, $114,000 at the end of year 2, and $124,000 at the end of year 4. What is the contract worth today at a discount rate of 7%?

b). What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 24 years? Assume a discount rate of 6% and cash flows at the end of the period.

c). The present value of an ordinary annuity is $34,000 when valued utilizing a 9% discount rate. By how much would the present value change if this were an annuity due?