You expect to receive a lump sum of $$120,000$ from a previous real estate investment at the end of a five year time horizon. What is the estimated present value of that investment return:

If the discount rate is $3\%$

If the discount rate is $6\%$

If the discount rate is $9\%$

If the discount rate is $12\%$

Sibley Memorial Medical Center has just received a pledge from a wealthy benefactor to donate $$15$ million at the beginning of each year for the next $15$ years. What is the estimated present value of this contribution if the discount rate is $6\%?$

The heirs to a family fortune have chosen to donate some specified amount to a local non$-$profit health system. Through their financial advisors, they have offered the provider a choice between the payment of $$60,000$ per year into perpetuity starting today or a one$-$time lump sum payment of $$700,000$ today.

Which of the two options is preferable from a present value standpoint if the appropriate discount rate is $5\%?$

Which of the two options is preferable from a present value standpoint if the appropriate discount rate is $13\%?$