Discounting: Using a 5% discount rate, what is the present value of:

a. $50 to be received 1 year from now?

b. $50 to be received 2 years from now?

c. $50 to be received 3 years from now?

d. $50 to be received 4 years from now?

e. $50 to be received 5 years from now?

f. $1000 to be received 5 years from now?

g. If you were to pay for all 6 of these flows in one bundle today and you wanted to earn a return of 5%, how much would you be willing to pay? To solve, add up your answers from (a-d):