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Consider the following alternatives: 1. $130 received in one year II. $210 received in five years . $320 received in 10 years a. Rank the

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Consider the following alternatives: 1. $130 received in one year II. $210 received in five years . $320 received in 10 years a. Rank the alternatives from most valuable to least valuable it the interest rate is 9% per year. b. What is your ranking if the interest rate is 5% per year? c. What is your ranking if the interest rate is 17% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 9% per year. First calculate the present value (PV) of each alternative: The PV of $130 received in one year if the interest rate is 9% per year is $(Round to the nearest cent.) The PV of $210 received in 5 years if the interest rate is 9% per year is $ (Round to the nearest cent.) The PV of $320 received in 10 years it the interest rate is 9% per year is $(Round to the nearest cent.) Next, rank the choices by their PV: (Select the best choice below.) O A. The ranking of the projects is: option ii > option ii > option OB. The ranking of the projects is option ii > option ii > option i. OC. The ranking of the projects is: option ii > option i > option ili. OD. The ranking of the projects is: option i > option il > option i. b. What is your ranking if the interest rate is only 6% per year? First calculate the present value (PV) of each alternative: The PV of $130 received in one year if the interest rate is 5% per year is $(Round to the nearest cent.) The PV of $210 received in 5 years if the interest rate is 5% per year is $(Round to the nearest cent.) The PV of $320 received in 10 years if the interest rate is 5% per year is $(Round to the nearest cent.) Next rank the choices by their PV: (Select the best choice below) O A. The ranking of the projects is: option option option i. OB. The ranking of the projects is: option ii > option is option i. c. The ranking of the projects is: option is option i > option il D. The ranking of the projects is: option option ii > option iil. c. What is your ranking if the interest rate is 17% per year? First calculate the present value (PV) of each alternative: The PV of $130 received in one year if the interest rate is 17% per year is $(Round to the nearest cent.) The PV of $210 received in 5 years in the interest rate is 17% per year is $(Round to the nearest cent) The PV of $320 received in 10 years if the interest rate is 17% per year is (Round to the nearest cent) Next rank the choices by their PV: Select the best choice below) OA The ranking of the projects is option option i>option The ranking of the projects is option > option option i O C. The ranking of the projects is option option option OD. The ranking of the projects is option i>aption is option

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