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 |
$1,000 |
$1,000 |
$5,000 |
2 |
2,000 |
1,000 |
5,000 |
3 |
3,000 |
1,000 |
(5,000) |
4 |
(4,000) |
1,000 |
(5,000) |
5 |
4,000 |
3,000 |
15,000 |
What is the present value of each if these three investments if the appropriate discount rate is 13%?