You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
End of Year Investment A Investment B Investment C
1 $17,000 $22,000
2 17,000 3 17,000 4 17,000 5 17,000 $17,000 6 17,000 66,000
7 17,000 8 17,000 9 17,000 10 17,000 22,000
Assuming an annual discount rate of 18 percent, find the present value of each investment.
A) What is the present value of investment A at an annual discount rate of 18%?
B) What is the present value of investment B at an annual discount rate of 18%?
C) What is the present value of investment C at an annual discount rate of 18%?