(Present

value of an uneven stream of

payments)

You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

Investment
End of Year	A			B		C
1	$	3,000		$	2,000	$	6,000
2		4,000			2,000		6,000
3		5,000			2,000		(6,000)
4		(6,000)			2,000		(6,000)
5		6,000			4,000		16,000

(Click

on the icon

in order to copy its contents into a

spreadsheet.)

What is the present value of each of these three investments if the appropriate discount rate is

15

percent?

a.What is the present value of investment A at an annual discount rate of

15

percent?

$nothing

(Round to the nearest cent.)

b.What is the present value of investment B at an annual discount rate of

15

percent?

$nothing

(Round to the nearest cent.)

c.What is the present value of investment C at an annual discount rate of

15

percent?

$nothing

(Round to the nearest cent.)