Consider the following alternatives: i. $150 received in one year i. $230 received in five years il. $310 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 8 % 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 17% per year? a. Rank the altenatives from most valuable to least valuable if the interest rate is 8 % per year First calculate the present value (PV) of each alternative The PV of $150 received in one year if the interest rate is 8 % per year is $ (Round to the nearest cent.) The PV of $230 received in 5 years if the interest rate is 8 % per year is $ (Round to the nearest cent.) The PV of $310 received in 10 years if the interest rate is 8 % 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 i> option i. B. The ranking of the projects is: option i> option ii> option i. C. The ranking of the projects is: option i> option ii> option i D. The ranking of the projects is: option ii> option i> option i. b. What is your ranking if the interest rate is only 3 % per year? First calculate the present value (PV) of each alternative: (Round to the nearest cent.) The PV of $150 received in one 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 $310 received in 10 years if the interest rate is 3% per year is $ (Select the best choice below) Next rank the choices by their PV A. The ranking of the projects is: option ii> option i> option O B. The ranking of the projects is: option i > option i> option i O C. The ranking of the projects is: option i > option i> option i O D. The ranking of the projects is: option i > option i> option i. c. What is your ranking if the interest rate is 17 % per year ? First calculate the present value (PV) of each alternative: (Round to the nearest cent.) The PV of $150 received in one year if the interest rate is 17 % per year is $ (Round to the nearest cent) The PV of $230 received in 5 years if the interest rate is 17 % per year is $ (Round to the nearest cent.) The PV of $310 received in 10 years if the interest rate is 17 % per year is $ Next rank the choices by their PV: (Select the best choice below) A. The ranking of the projects is: option i > option ii > option ii. B. The ranking of the projects is: option ii> option ii> option i C. The ranking of the projects is: option ii> option i> option ii. D. The ranking of the projects is: option i > option ii> option ii cunt afr 28 yours is
