5. What is the PV of a 6 year, $785 annuity due if the annual interest rate is 5%?

6.Draw a time line of the following three cash flow streams. Stream A has cash flows of -100, 90, 159, 85, and 200 in years 0 through 4. Stream B is an annuity with cash flows of $100 for three years. Stream C is a perpetuity with a constant cash flow of $80. Compare the cash flows of the three cash flow streams. Identify the cash flow stream pays the most at year two and record this NUMBER.