Hard copy to be submitted in class (I do NOT need copies of the questions, only your answers). You must show your work for credit. Answers that aren't your own will receive a zero. Unless otherwise noted, ignore taxes and transaction costs. 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 a 6.5% return is the appropriate discount rate to use, what is the present value of each alternative? Which should you prefer? a) $60,000 five years from today b) $40,000 today c) $15,000 today plus four annual payments of $9,000, the first of which would occur one year from today