(Present
value of an uneven stream of
payments)
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
$
3,000
$
3,000
$
6,000
2
4,000
3,000
6,000
3
5,000
3,000
(6,000)
4
(6,000)
3,000
(6,000)
5
6,000
5,000
16,000
What is the present value of each of these three investments if
the appropriate discount rate is
8
percent?
a. What is the present...