1. If the present value of the cash flow X is $240 and the present value cash flow Y $160 thenthe present value of the combined cash flow is: a. $240b. $160c. $80d. $4002. If the 2-year discount factor is 0.64 what is the rate of interest (in APR)? a. 10%b. 25%c. 40%d. None of the above3. What is the present value of the following cash flow at a discount rate of 9%? a. $372431.81b. $450000c. $405950.68d. None of the above4. At an interest rate of 10% which of the following cash flows should you prefer? Year 1 Year 2 Year 3 a. 500 300 100b. 100 300 500c. 300 300 300d. Any of the above as they all add up to $900