Calculate and rank the equivalent values eight years from now of the following cash flow streams:
(i) A single payment of $5000 today.
(ii) An ordinary annuity starting today with eight annual payments of $910.
(iii) An ordinary annuity starting in three years with five annual payments of $1675.
Do the calculations and ranking for each of the following two cases:
a. Money can earn 8% compounded annually for the next eight years.
b. Money can earn 10% compounded annually for the next eight years.