1. 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 1,000 1,000 5,000 2 2,000 1,000 5,000 3 3,000 1,000 (5,000) 4 (4,000) 1,000 (5,000) 5 4,000 3,000 15,000 What is the present value of each if these three investments if the appropriate discount rate is 10%?
2. What are the advantages of maintaining a separate capital budget? When is it necessary for a nonprofit organization to maintain a separate capital budget?