Consider the following alternatives:

i.

$ 120

received in one year

ii.

$ 240

received in

five

years

iii.

$ 300

received in

10

years

a. Rank the alternatives from most valuable to least valuable if the interest rate is

7 %

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

18 %

per year