Consider five annual cash flows (the first occurring one year from today) Year Cash Flow 1 $5 2 6 3 7 4 8 5 9 Given a discount rate of 10 , what is the present value of this stream of cash flows ...

Consider five annual cash flows (the first occurring one year from today): Year Cash Flow 1 ..................................

Question:

Consider five annual cash flows (the first occurring one year from today):
Year Cash Flow
1 .................................. $5
2 .................................. 6
3 .................................. 7
4 .................................. 8
5 .................................. 9
Given a of 10%, what is the present value of this stream of cash flows?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...