Question: Problem 2 (15 points) : Supoose you are given the following three cash inflows from which to choose. Alternative A: Year-end receipts of $8,000 for

Problem 2 (15 points): Supoose you are given the following three cash inflows from which to choose.
Alternative A: Year-end receipts of $8,000 for each of the next four years
Alternative B: A Single, lump-sum receipt of $33,000 at the end of the fourth year
Alternative C: Year-end receipt of $2,500 for each of the next four years plus a lump-sum receipt of $25,000 at the end of the fourth year
Which alternative would you choose if the annual discount rate of money is 8%, why?
Altnernative
A B C
Number of Years
Annual discount rate
Periodic payment for the next four years
Payment Type
Lump-sum payment at the end of Year 4
Present value of Future cash flows
Future value of cash flows

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