Question 1: If the single amount of $5000 is to be received in 3 years and dis

Question 1: If the single amount of $5000 is to be received in 3 years and discounted at 6% its present value is A) $4198. B) $4717. C) $4333. D) $4700. Answer:
Question 2: Which of the following discount rates will produce the smallest present value? A) 4% B) 8% C) 9% D) 10% Answer:
Question 3: Suppose you have a winning lottery ticket and you are given the option of accepting $5000000 three years from now or taking the present value of the $5000000
now. The sponsor of the prize uses a 6% discount rate. If you elect to receive the present value of the prize now the amount you will receive is A) $4198100. B) $4319200. C) $4450. D) $5000000.