1. You are given the following cash flow information the appropriate discount 4 percent for years 1-4 and 7 percent for years 5-10. Payments are received at the end of the year.

Year

1 through 4

Amount

$8,ooo

Interest Rate 4%

Year 5 through 10

Amount

$11,000

Interest Rate 7%

1. You are given the following cash flow information the appropriate discount 4 percent for years 1-4 and 7 percent for years 5-10. Payments are received at the end of the year.

Year

1 through 4

Amount

$8,ooo

Interest Rate 4%

Year 5 through 10

Amount

$11,000

Interest Rate 7%

What should you be willing to pay right now to receive the income stream above?

Please show work.

What should you be willing to pay right now to receive the income stream above?