RFS's Present Values

The following table gives the net cash inflows at each point in time associated with nine alternatives. For example, item 1 pays $83.96 immediately. Item 9 pays nothing immediately, $100 one year hence, $50 two years hence, and $200 three years hence.

Item Time 0 1 2 3 1 $83.96 2 $100.00 3 $50.00 $40.00 $1.42 4 $6.00 $6.00 $106.00 5 $119.10 6 $20.00 $25.00 $30.00 7 $35.00 $30.00 $25.00 8 $147,015.66 $55.00 $55.00 $55.00 9 $100.00 $50.00 $200.00

We begin with a set of questions about items 1, 2, and 3. The interest rate applicable to all nine items, unless specified otherwise, is 6% annually. In providing your answers, answer to the nearest $0.01 and expect some minor rounding errors.