8 Given the mixed streams of cash flows shown in the following table, answer parts (a) and (b): Cash Flow Stream Year 1 2 $ 50.000 40,000 30,000 20,000 10.000 $150,000 B $ 10,000 20,000 30,000 40,000 50.000 $150.000 4 5 Totals a. Find the present value of each stream, using a 15 percent discount rate. Which cash flow stream is preferable? Make sure to show your calculations for each discounted cash flow payment for each of the streams. (Hint: Double check your results using your financial calculator.) b. Compare the calculated present values, and discuss them in light of the fact that the undiscounted total cash flows amount to $150,000 in each case, (e.g. Why is there a difference in present values?) 9. You have $1,500 to invest today at 7 percent interest compounded annually. 3. How much will you have accumulated in the account at the end of the following number of years? Three years, six years and nine years, b. Use your findings in part (a) to calculate the amount of interest earned in the first three years (years 1 - 3), the second three years (years 4 - 6), the third three years (years 7-9)