1. What is the present value of the following stream of cash flow to be received at the end of each year assuming a discount rate of 20%? What is the future value at the end of year 3 assuming an annual interest rate of 20%?
Year 1 : 0
Year 2 : $10,000
Year 3 : $15,000
2. What is the approximate present value of $1,000 to be received each year for 15 years assuming a discount rate of 10%?