Your grandfather has offered you a choice of one of the three following alternatives: $11,500 now; $5,700 a year for five years; or $71,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. Required:
a. Assuming you could earn 9 percent annually, compute the present value of each alternative.
b. Which alternative should you choose?

1. $11,500

2. $22,171.01

3. $46,145.13

option 3. This is because it has the highest present value

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

option 2

Cash flow each year from year 1 to 5 = $5,700

I = 9

PV = 22,171,01

OPTION 3

Cash flow in year 5 = 71,000

I = 9

PV = 46,145.13

To determine PV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

y=-x^2-4x

Step-by-step explanation:

y=ax^2+bx+c

0=a(0)^2+b(0)+c

c=0

0=a(-4)^2+b(-4)+0

0=16a-4b

0=48a-12b

3=a(-3)^2-3b

0=9a-3b-3

0=36a-12b-12

48a-12b=36a-12b-12

12a=-12

a=-1

16a=4b

4a=b

b=4(-1)

b=-4

y=-x^2-4x

Hope this helps. I did it a longer way because sometimes the width varies, but for this one there is a zero at x=0 and x=-4 and the slope is negative so you can do y=-x(x+4)=-x^2-4x. Anyways... have a nice night.