Present value of an uneven stream of payments you are given


(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:

End_of_Year A B C

1 $2,000 $1,000 $4,000

2 3,000 1,000 4,000

3 4,000 1,000 (4,000)

4 -5,000 1,000 (4,000)

5 5,000 3,000 14,000

a. What is the present value of investment A at an annual discount rate of 9 ?percent?

b. What is the present value of investment B at an annual discount rate of 9 ?percent?

c. What is the present value of investment C at an annual discount rate of 9 ?percent?

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Financial Management: Present value of an uneven stream of payments you are given
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