1. You won a raffle while you were down the shore with friends. For your prize, you can choose among the following three alternatives. If you believe that an 8% return is the appropriate discount rate to use, what is the present value of each alternative? Which should you prefer? a) $40,000 four years from today b) $25,000 today c) $10,000 today plus four annual payments of $4,000, the first of which would occur one year from today 2. You have a choice between investing in two projects, and you can only complete one of them. Project Aniston would cost you $35,000 today, while Project Jolie would cost you $50,000 today. In future years, each will produce the cash flows listed below (at the end of each year). Assuming you require a 6.5% return on your investments, compute the net present value of the two options and indicate which investment you should make (if any). Year Cash Flows Produced By Each Investment Project Aniston Project Jolie $22,000 $18,000 $22,000 $22,000 $22,000 $29,000 $22,000 $35,000 $12.50 investment today that pays a nominal