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(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

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(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: End of Year 2 A $ 2,000 3,000 4,000 (5,000) 5,000 or A WN Investment B $1,000 1,000 1,000 1,000 3,000 c $ 6.000 6,000 (6,000) (6.000) 16.000 3 4 5 What is the present value of each of these three investments if the appropriate discount rate is 8 percent? a. What is the present value of investment A at an annual discount rate of 8 percent? S (Round to the nearest cent)

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