Consider each of the following situations independently. 1. Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment. Compute the present value of the cash inflows for each investment using a 18% discount rate: (Hint: Use Microsoft Excel to calculate the discount factor(s}.) (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) Investment Year x Y 1 $ 23,666 $ 32,666 2 26, 666 29, 666 3 29, 666 26, 666 4 32, 666 23, 666 $116,666 $116,666 X 2. At the end of four years, when you graduate from college, your parents have promised to give you a used car that will cost $30,000. (Hint. Use Microsoft Excel to calculate the discount factor(s).) a. What lump sum must they invest now to have the $30,000 at the end of four years if they can invest money at 10%? (Do not round your intermediate calculations. Round your PV factor to 3 decimal places and round your final answer to the nearest whole dollar.) Present value b. What lump sum must they invest now to have the $30,000 at the end of four years if they can invest money at 14%? (Do not round your intermediate calculations. Round your PV factor to 3 decimal places and round your final answer to the nearest whole dollar.) Present value3. Joanne hasjust won the grand prize on a popular quiz show. She has a choice between (a) receiving $350,000 immediately and (b) receiving $50,000 per year at the end of the year for eight years, plus a lump sum of $200,000 at the end ofthe eight-year period. If Joanne can get a return of 8% on her investments, which option would you recommend that she accept? (Hint. Use Microsoft Excel to calculate the discount factor{s).} 0 Option a 0 Option b 4. You havejust learned that you are a beneficiary in the will of your late Uncle Sam. The executor of her estate has given you three options as to how you may receive your inheritance: a. You may receive $200,000 immediately. b. You may receive $310,000 at the end of five years. c. You may receive $44,000 at the end of each year for five years (a total of $220,000). lfyou can invest money at a 8% return, which option would you prefer? (Hint Use Microsoft Excel to calculate the discount factor(s}.) 0 Option b 0 Option a 0 Option c