(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	$	1,000		$	1,000	$	6,000
2		2,000			1,000		6,000
3		3,000			1,000		(6,000)
4		(4,000)			1,000		(6,000)
5		4,000			3,000		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

11

percent?

Question content area bottom

Part 1

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

11

percent?

$enter your response here

(Round to the nearest cent.)

Part 2

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

11

percent?

$enter your response here

(Round to the nearest cent.)

Part 3

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

11

percent?

$enter your response here

(Round to the nearest cent.)