Score: ALT-PV-LUMP-SUM Choose exercise (1-5) 1 Rainier Corp. is looking at an investment that will pay Rainier Corp. $1,331 in 3 years. a. How much should the company pay for this investment today, in order to earn a rate of return of 10.00 %? 4 3 1 2 Investment in time period 0: $1,331 PRESENT VALUE OF A SERIES OF $1.00 CASH FLOWS 6% PRESENT VALUE OF $1.00 4% 9615 10% .9091 1.7355 12 % 5% 9524 1.8594 2.7232 3.5460 8% 12% 4% 5% 6% 8% 10% Periods 9259 8929 .9615 9434 9259 .9091 .8929 9524 .9434 1 1.8861 2.7751 1.8334 1.6901 2.4018 1.7833 7972 8900 .8396 8573 8264 9246 8890 .9070 2 2.5771 2.4869 2.6730 7513 7118 7938 .8638 3 3.0373 3.1699 3.7908 3.4651 3.3121 .6355 3.6299 7350 .6830 6209 7921 .7473 4 8548 8227 3.9927 3.6048 4.3295 4.2124 4.4518 5674 .6806 7835 5 8219