Suppose you are promised $1,000 a year from now, and another $1,000 in two years. If your discount rate is 5 percent, how much would you be willing to pay now for this investment opportunity? To solve this problem, enter the following into cell E5: =PV(E2,E3, E4) HOME fx 1 2 3 4 5 6 7 8 9 10 11 12 13 A B t Cash Flows 012 INSERT $0 $1,000 $1,000 C D Rate: # Periods: Pmt Amount: PV: DATA E 5% 2 $1,000 F G H I J KI

Suppose you are promised \\( \\$ 1,000 \\) a yoar from now, and another \\( \\$ 1,000 \\) in two years. If your discount rate is 5 percont, how much would you be wiling to pay now for this investment opportunity? To solve this problem, enter the following inso cell E5: \\( \\Rightarrow P V(E 2 . E 3 . E 4) \\)