A project has these cash flows: $$2,0003$ years ago, $$1,000$ now and $-$$$2,000$ three years from now. Which is the correct formula for computing today's value of these cash flows given a $6\%$ rate of interest?

Multiple choice question.

Today's value $=$ $$2,000+$ $$1,000-$ $$2,000$

Today's value $=$ $$2,000/(1+0\mathrm{.}06)3+$ $$1,000(1+0\mathrm{.}06)0-$ $$2,000(1+0\mathrm{.}06)3$

Today's value $=-$$$2,000(1+0\mathrm{.}06)3-$ $$1,000(1+0\mathrm{.}06)0+$ $$2,000/(1+0\mathrm{.}06)3$

Today's value $=$ $$2,000(1+0\mathrm{.}06)3+$ $$1,000(1+0\mathrm{.}06)0-$ $$2,000/(1+0\mathrm{.}06)3$