P4A.13 Consider the streams of income given in the following table.

a. Find the present value of each income stream, using a 15% discount rate.

b. Compare the calculated present values and discuss them in light of the fact that the undiscounted total income amounts to $10 000 in each case.

Income Stream End of Year A B 1 $ 4 000 $ 1 000 2 3 000 2 000 3 2 000 3 000 4 1 000 4 000 Total $10 000 $10 000