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Consider the following alternatives i. $120 received in one year ii. $240 received in five years ii. $310 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 12% per year b, what is your ranking if the interest rate is 1% per year? C. What is your ranking if the interest rate is 18% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 12% per year First calculate the present value (PV) of each alternative The PV of $120 received in one year if the interest rate is 12% per year is $ . (Round to the nearest cent.) The PV of $240 received in 5 years if the interest rate is 12% per year is $1 (Round to the nearest cent.) The PV of $310 received in 10 years if the interest rate is 12% per year is $D (Round to the nearest cent.) Next, rank the choices by their PV: (Select the best choice below.) OA. The ranking of the projects is: option ii>optioni >option i O B. The ranking of the projects is: option ii> optioni> option ii O C. The ranking of the projects is: option ii> option i>option ii O D. The ranking of the projects is: option i>option ii>option ili b. What is your ranking if the interest rate is only 1% per year? First calculate the present value (PV) of each alternative The PV of $120 received in one year if the interest rate is 1% per year is $D (Round to the nearest cent.) The PV of $240 received in 5 years if the interest rate is 1% per year is $1 . (Round to the nearest cent.) The PV of $310 received in 10 years if the interest rate is 1% per year is $ . (Round to the nearest cent.) Next rank the choices by their PV: (Select the best choice below.) O A. The ranking of the projects is: option iii > option i > Option 11 O B. The ranking of the projects is: option i> optioni > option ili O C. The ranking of the projects is: option ii> option i>option i. O D. The ranking of the projects is: option ii > option ii/> option i c. What is your ranking if the interest rate is 18% per year? First calculate the present value (PV) of each alternative The PV of $120 received in one year if the interest rate is 18% per year is $ . (Round to the nearest cent.) The PV of $240 received in 5 years if the interest rate is 18% per year is $11. (Round to the nearest cent.) The PV of $310 received in 10 years if the interest rate is 18% per year is $ . (Round to the nearest cent.) Next rank the choices by their PV: (Select the best choice below.) 0 A. The ranking of the projects is: option iii > option i > option i. O B. The ranking of the projects is: option ii > option i > option ili O C. The ranking of the projects is: option i > option ii > option ili O D. The ranking of the projects is: option ii > option ii>option

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