1. Find the present value of the following cash flows (interest rate is 10%).
   1. $500 lump sum received after 3 years
   2. $1,500 lump sum received at the end of 5 years
   3. $15,000 lump sum received after 10 years

2. Find the future value of the following investments (interest rate is 10%).
   1. $500 investment for 3 years
   2. $1,500 investment for 5 years
   3. $15,000 investment over 10 years

Answer rating: 100% (QA)

ANSWER 1 To find the present value of each cash flow we can use the formula PV FV 1 rn Where PV is t... View the full answer