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THIS PROBLEM HAS TWO QUESTIONS/////// (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from

\\\\\\THIS PROBLEM HAS TWO QUESTIONS///////

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(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B 1 $ 3.000 $1,000 $ 4,000 2 4.000 1,000 4,000 3 5.000 1,000 (4,000) 4 (6,000) 1,000 (4,000) 5 6.000 4,000 14,000 What is the present value of each of these three investments if the appropriate discount rate is 15 percent? a. What is the present value of investment A at an annual discount rate of 15 percent? $ (Round to the nearest cent.)

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