5) What is the present value of an annuity which will pay 5 annual dividends of $1, with the first payment occurring exactly 1 years from today. The appropriate discount rate is 10%.How would your answer to5)change if the first payment was due to be received todayCash flow pattern is now what is commonly described asan'annuitydue'. The first cash flow has a present value of $1 (it is received 'presently'), after whichwe receive a 4 year ordinary annuity: