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し is lder the lollowing alle mauves i. $120 received in one year ii. $240 received in five years ili $350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 9% per year b. What is your ranking if the interest rate is 3% per year? C. What is your ranking if the interest rate is 19% per year?

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For determining the rank we will calculate the present value of all the alternatives and rank from highest value to lowest interest rate 4 Alternative Receipt Tenure Present value Ranks 110.09 Third 155.98 First 147.84 Second 240 10 9 b) 10 interest rate 3% Alternative Receipt Tenure Present value Ranks 116.50 Third 207.03 Second 260.43 First 12 240 10 15 c) 16 17 18 19 interest rate Alternative Receipt Tenure Present value Ranks 100.84 First 100.57 Second 240 350 10 61.46 ThirdFor determining the rank interest rate 0.09 Ranks Third First Second 4 Alternative Receipt Tenure Present value -c5/( 1+$D$3

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