Assume you expect to receive $1,000 at the end of year 1, $1,200 at the end of year 2, and $2,400 at the end of year 3. Explain, in words, the process by which you can find the present value of these cash flows if the appropriate rate of discount is 6 percent.

Provide a discussion of the overriding objective of the financial manager, and comment on whether or not this goal is the appropriate goal for a corporate manager.