In: Finance
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
Investment
End of Year A B C
1 $1,000 $3,000 $5,000
2 2,000 3,000 5,000
3 3,000 3,000 (5,000)
4 -4,000 3,000 (5,000)
5 4,000 7,000 15,000
What is the present value of each of these three investments if the appropriate discount rate is 13 percent?