P4A.16 Using a financial calculator or an Excel spreadsheet, calculate the following.

a. The present value of $500 to be received four years from now, using an 11% dis- count rate.

b. The present value of the following end-of-year income streams, using a 9% dis- count rate and assuming it is now the beginning of 2012.

Income Income End of Year Stream A Stream B 2012 $80 $140 2013 80 120 2014 80 100 2014 80 80 2016 80 60 2017 80 40 2018 80 20