1. You plan to receive annual payments of $4,000 at the end of each year for ten years, at the end of each year. The first payment will be received in year 3. What is the present value of these payments if the discount rate is 9 percent?
A. $25,670.63
B. $19,882.44
C. $23,551.04
D. $21,606.46
2. Which capital budgeting tools, if properly used, will yield the same answer?
a. WACC, IRR, and APV
b. NPV, IRR, and APV
c. NPV, APV and flow to debt
d. NPV, APV and WACC
e. APV, WACC, and flow to equity