Question #1: The present value today of the following 4 cash flows is $6,500 at an interest rate of 8%. Therefore, what is the value of the Year 3 cash flow? Year 1 Year 2 Year 3 Year 4 $1200 $1800 ????? $2700 Question #2: You will receive 10 annual payments of $17,000. The first payment will be received 6 years from today and the interest rate is 8 percent. What is the value of the payments today? Show your detailed work with the answer.

Question \#1: The present value today of the following 4 cash flows is $6,500 at an interest rate of 8%. Therefore, what is the value of the Year 3 cash flow? Question #2 : You will receive 10 annual payments of $17,000. The first payment will be received 6 years from today and the interest rate is 8 percent. What is the value of the payments today? Show your detailed work with the