1. (Part 1)You are about to invest $15,000 into a project thatwill generate $5,500 of cash flows each year for the next 3 years.If your cost of capital is 11%, then the present value of futurecash flows is:
   1. -$1,559
   2. $1,559
   3. $1,029
   4. -$1,029

2. (Part 2)The present value of the following cash flow stream atan interest rate of 10% per year is closest to:

$0 at Time 0;

$1,500 at the end of Year 1;

$3,000 at the end of Year 2;

$4,500 at the end of Year 3

1. $6,934
2. $3,559
3. $2,329
4. $7,329