(Present

value of annuities and complex cash

flows)

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

Investment Alternatives
End of Year	A		B		C
1	$	16,000			$	16,000
2		16,000
3		16,000
4		16,000
5		16,000	$	16,000
6				16,000		80,000
7				16,000
8				16,000
9				16,000
10				16,000		16,000

(Click

on the icon

in order to copy its contents into a

spreadsheet.)

Assuming an annual discount rate of

23

percent, find the present value of each investment.

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

23

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

23

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

23

percent?

$enter your response here

(Round to the nearest cent.)