Jan is choosing between three alternative investments, each of which will require a $100,000 initial outlay. Determine the present value of the after-tax cash flows from the three investments described below.

Assume the following in your computations:

• Jan is in the 24% marginal bracket; Long-Term Capital Gains rate is 15%;
• All tax payments occur at the end of the year;
• 4% discount rate (present value interest factors are below).

PV $1

year1 0.962

year 2 0.925

year 3 0.889

Investment B is a corporate bond that will pay 7% interest at the end of each year for 3 years, with the principal recovered at the end of the 3^rd year. ( the answer is $3,668, but can you show the work)