Calculate the present value of each of the alternatives below, if the discount rate is 12%.
a. $45,000 today in one lump sum.
b. $70,000 paid to you in seven equal payments of $10,000 at the end of each of the next seven years.
c. $80,000 paid in one lump sum 7 years from now.

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The Answer of Calculate the present value of each of the alternatives below, if the discount rate is 12%.
a. $45,000 today in one lump sum.
b. $70,000 paid to you in seven equal payments of $10,000 at the end of each of the next seven years.
c. $80,000 paid in one lump sum 7 years from now.

Calculate the Present Value of Each of the Alternatives Below