First

Since annuity Payments are the Same we can use this formula:Annuity PV = C x (1 – Present Value Factor) / rWhere:Present Value Factor: 1/(1+r)tr: Discount Rate 6% & 9%t : Number of Periodsc: Payment Per Year |

Using the Formula above: Investment X @ 6% for 9 years: $4,300 Annuity Payments |

Present Value Factor |   | 0.591898464 |

  | PV | $ 29,247.28 |

Investment Y @ 6% for 5 years: $6,100 Annuity Payments

Present Value Factor |   | 0.747258173 |

  | PV | $ 25,695.42 |

Thus at a discount rate of 6% investment X has a higher present value with a Present Value of $29,247

Investment X @ 22% for 9 years: $4,300 Annuity Payments

Present Value Factor |   | 0.167017325 |

  | PV | $ 16,281.03 |

Investment Y @ 22% for 5 years: $6,100 Annuity Payments

Present Value Factor |   | 0.369999252 |

  | PV | $ 17,468.20 |

Thus at a discount rate of 22% investment Y has a higher present value with a Present Value of $17,468.

3)

Future Value of Multiple Cash Flows:

At 8%:

[ 910 x (1.08)3 ]+ [ 1140 x (1.08)2 ]+ [ 1360 x (1.08)1 ]+ [ 2100 ] = $6,044.84

At 11%:

[ 910 x (1.11)3 ]+ [ 1140 x (1.11)2 ]+ [ 1360 x (1.11)1 ]+ [ 2100 ] = $6,258.73

At 24%:

[ 910 x (1.24)3 ]+ [ 1140 x (1.24)2 ]+ [ 1360 x (1.24)1 ]+ [ 2100 ] = $6,981.65

27)

Discounted Cash Flow Analysis:

Find Present Value with a 8.4 percent discount rate:

[ 1200 / (1.084)1 ]+ [ 1100 / (1.084)2 ]+ [ 800 / (1.084)3 ]+ [ 600 / (1.084)4 ] = $3,105.74

28)

Find Present Value with a 9.29 percent discount rate:

[ 1900 / (1.0929)1 ]+ [ 2300 / (1.0929)2 ]+ [ 4500 / (1.0929)3 ]+ [ 5100 / (1.0929)4 ] = $10,686.10