Present values of single amounts and streams You have a choice of accepting either of two 5-year cash flow streams or single amounts. One cash flow stream is an ordinary annuity, and the other is a mixed stream. You may accept alternative A or B, either as a cash flow stream or as a single amount. Given the cash flow stream and single amounts associated with each (see the following table), and assuming a 9% opportunity cost, which alternative (A or B) and in which form (cash flow stream or single amount) would you prefer?

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End of year 1 2 3 4 5 At time zero Cash flow stream Alternative A $700 700 700 700 700 $2,825 Alternative B $1,100 900 700 500 300 Single amount $2,800