Answer the following questions. Provide explanations for each:

a. If your discount rate is 12 percent would you prefer \($10,000\) today or \($20,000\) in five years?

b. A customer purchases \($32,000\) of goods. The goods will be paid for in cash in four years. How much revenue should be recorded on the date the goods are delivered, assuming a discount rate of 5 percent?

c. If your discount rate is 18 percent what would be the maximum amount you would pay for cash flows of \($20,000\) in two years, \($30,000\) is four years and \($50,000\) in six years?

d. A “zero coupon bond” is a type of long-term debt that pays no interest but pays a single amount on the date the bond matures. Your broker offers you a zero coupon bond that will pay \($10,000\) in 15 years. How much would you pay for the bond today, if your discount rate is 8 percent?

e. Would you pay \($100,000\) to receive \($30,000\) in one year, \($50,000\) in two years, and

\($70,000\) in three years? Assume your discount rate is 20 percent.

f. At what discount rate would you be indifferent between \($1,000\) today and

\($1,610.51\) in five years?