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Question 1 (5 points) Which of the following is a present value method of analyzing capital investment proposals? O average rate of return O cash

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Question 1 (5 points) Which of the following is a present value method of analyzing capital investment proposals? O average rate of return O cash payback method O accounting rate of return Onet present value Question 8 (5 points) Using the following partial table of present value of $1 at compound interest, determine the present value of $50,000 to be received three years hence with earnings at the rate of 12% a year: Year 6% 10% 12% 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 O $37,550 $31,800 O $35,600 Os39,850 Question 9 (5 points) Use these present value tables to answer the questions that follow. Below is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 4.212 3.791 3.605 Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next four years, what would be the present value of the investment cash inflows, assuming an earnings rate of 12%? O $20,352 $3,969 O $22,190 O $21,259

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