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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
(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 | $ | 3,000 | $ | 5,000 | |||
| 2 | 4,000 | 3,000 | 5,000 | ||||||
| 3 | 5,000 | 3,000 | (5,000) | ||||||
| 4 | (6,000) | 3,000 | (5,000) | ||||||
| 5 | 6,000 | 7,000 | 15,000 | ||||||
What is the present value of each of these three investments if the appropriate discount rate is
11
percent?
a.What is the present value of investment A at an annual discount rate of
11
percent?
$nothing
(Round to the nearest cent.)
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