1. Assume a discount rate of 5% Find the present value of the following: receive $10 now and the same amount a year from today and pay $3 a year forever with the first payment being a year from today.
2. The following are financial statements which are commonly heard. Comment on the veracity of those statements. (a) If someone makes money, someone else loses it. (b) Investing is nothing more than gambling (d) The stock market will always go up.