You have an opportunity to make an investment that will pay $100 at the end of the first year, $500 at the end of the second year, $400 at the end of the third year, $100 at the end of the fourth year, and $300 at the end of the fifth year.

a.Find the present value if the interest rate is 12% percent. (Hint: You can simply bring each cash flow back to the present and then add them up. Another way to work this problem is to either use the NPV function in Excel or to use your CF key on a financial calculator but you'll want to check your calculator's manual before you use this key.

b. What would happen to the present value of this stream of cash flows if the interest rate were zero percent?

a. What is the present value of the investment if the interest rate is 12 percent? \\( \\$ \\quad \\) (Round to the nearest cent.)