Consider the following alternatives: i. $130 received in one year ii. $230 received in five years iii. $ 350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 9 % per year. b. What is your ranking if the interest rate is 3 % per year? c. What is your ranking if the interest rate is 13 % per year?

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 $ 230 received in 5 years if the interest rate is 9 % per year is(Round to the nearest cent.)

The PV of $ 350 received in 10 years if 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.)

A.The ranking of the projects is:option i>option iii>option ii

B.The ranking of the projects is:option ii>option i>option iii

C.The ranking of the projects is: option ii >option iii >option i.

D.The ranking of the projects is:option iii >option ii >option i

part B

b. What is your ranking if the interest rate is only 3% per year?

First calculate the present value (PV) of each alternative:

The PV of $130 received in 1 year if the interest rate is 3% per year is (Round to the nearest cent.)

The PV of $230 received in 5 years if the interest rate is 3 %per year is(Round to the nearest cent.)

The PV of $350 received in 10years if the interest rate is 3 % per year is ?(Round to the nearest cent.)

Next rank the choices by their PV:(Select the best choice below.)

A.The ranking of the projects is:option ii>option iii>option i

B.The ranking of the projects is:option i>option ii>option iii

C.The ranking of the projects is:option iii>option ii>option i

D.The ranking of the projects is:option iii>option i>option ii

Part C

What is your ranking if the interest rate is

13 %13%

per year?

First calculate the present value (PV) of each alternative:

The PV of $ 130 received in one year if the interest rate is 13 % per year is (Round to the nearest cent.)

The PV of $ 230 received in 5 years if the interest rate is13 %per year is (Round to the nearest cent.)

The PV of $ 350 received in 10years if the interest rate is 13 % per year is (Round to the nearest cent.)

Next rank the choices by their PV: (Select the best choice below.)

A.The ranking of the projects is:option iii>option i>option ii

B.The ranking of the projects is: option ii>option i>option iii

C.The ranking of the projects is: option ii>option iii>option i.

D.The ranking of the projects is: option i>option option ii>option iii