Homework:Unit 6 Lab Assignment

Question 11, P6-49 (similar to)

Part 1 of 3

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Part 1

(Present

value of annuities and complex cash

flows)

You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:

Investment
End of Year	A		B		C
1	$	18,000			$	23,000
2		18,000
3		18,000
4		18,000
5		18,000	$	18,000
6				18,000		69,000
7				18,000
8				18,000
9				18,000
10				18,000		23,000

(Click

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in order to copy its contents into a

spreadsheet.)

Assuming an annual discount rate of

19

percent, find the present value of each investment.

a. what is the present value of investment A at an annual discount rate of 19 percent?

b. '''' for investment B

c. '''' for invest meant C