You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

End of Year A B C 1 $1,000 $1,000 $5,000 2 2,000 1,000 5,000 3 3,000 1,000 (5,000) 4 -4,000 1,000 (5,000) 5 4,000 3,000 15,000

What is the present value of each of these three investments if the appropriate discount rate is 14 percent?

a. What is the present value of investment A at an annual discount rate of 14percent?