You have just received a windfall from an investment you made in a friend’s business

Subject:Operations ManagementPrice:2.87 Bought7

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You have just received a windfall from an investment you made in a friend’s business. He will be paying you $10,000 at the end of this year, $20,000 at the end of the following year, and $30,000 at the end of the year after that (three years from today). The interest rate is 3.5% per year.

a.What is the present value of your windfall?

b.What is the future value of your windfall in three years (on the date of the last payment)?