Time Value Problems

For problems 1 5, use a discount rate of 10%. Problem 6 do not.

1) What would be the value of an asset that returns a cash flow of $1000 one year from now?

2) What would be the value of an asset that returns a cash flow of $1000 in each of the next five years starting one year from now?

5) What would be the value of an asset that returns a cash flow of $100 each year forever starting one year from now?

6) If the current value of $1000 received five years from now is $680.50, what is the assumed annual interest rate?