Finance

1. What is the present value of $800 to be received at the end of eight years, assuming the following annual interest rate?

a. 4 percent, discounted annually

b. 8 percent, discounted annually

c. 20 percent, discounted quarterly

d. 0 percent

2. BASIC 13. Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of $10,000. Assuming that you desire a 10 percent return on your initial investment, compute the net present value of the two alternatives and evaluate their relative attractiveness:

Investment 1		Investment 2
Cash Flows	Year	Cash Flows	Year
5,000	1	8,000	1
6,000	2	7,000	2
7,000	3	6,000	3
8,000	4	5,000	4