(Related to Checkpoint 6.6)

(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	$	14,000			$	14,000
2		14,000
3		14,000
4		14,000
5		14,000	$	14,000
6				14,000		70,000
7				14,000
8				14,000
9				14,000
10				14,000		14,000

(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.

Question content area bottom

Part 1

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.)