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1.Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is between $27,600 and

1.Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is between $27,600 and $27,620.

time

cash flows

discount rate

0

3%

1

$0

2

$0

3

$0

4

$0

5

$0

6

$6,000

7

$6,500

8

$7,000

9

$7,500

10

$8,000

True

False

2. Calculate the present value of the given stream of cash flows using the given discount rate. The present value you find is between $16,250 and $16,260.

time

cash flows

discount rate

0

10%

1

$0

2

$0

3

$0

4

$0

5

$0

6

$6,000

7

$6,500

8

$7,000

9

$7,500

10

$8,000

True

False

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