1. Your local travel agent is advertising an upscale winter vacation package for travel three years form now to Antarctica. The package requires that you pay $20000 today, $35000 one year from today, and a final payment of $45000 on the day you depart three years from today. What is the cost of this vacation in today’s dollars if the discount rate is 9.75 percent?
2. An investment promises cash inflows in years 1, 2, 3 and 4 of $7,499, $5,154, $16,611, and $18,080 respectively. If your required rate of return is 10.3%, what is the present value of the cash inflows for this project