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

Investment

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End of Year

A

B

C

1

$

3,000

$

2,000

$

5,000

2

4,000

2,000

5,000

3

5,000

2,000

(5,000)

4

(6,000)

2,000

(5,000)

5

6,000

5,000

15,000

What is the present value of each of these three investments if the appropriate discount rate is 12percent?

a.What is the present value of investment A at an annual discount rate of 12percent?