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a . What is the present value of the following set of cash flows, discounted at 9 . 5 % per year? Year 1 2

a. What is the present value of the following set of cash flows, discounted at 9.5% per year?
Year
1
2
3
4
5
CF
$ 10
$ 21
$ 32
$ 43
$ 54
b. What is the present value of the following set of cash flows, discounted at 9.5% per year?
Year
1
2
3
4
5
CF
$ 54
$ 43
$ 32
$ 21
$ 10
c. Each set contains the same cash flows ($ 10, $ 21, $ 32, $ 43, $ 54), so why is the present value different?
Question content area bottom
Part 1
a. What is the present value of the following set of cash flows, discounted at 9.5% per year?
Year
1
2
3
4
5
CF
$ 10
$ 21
$ 32
$ 43
$ 54
The present value of the cash flow stream is $
$115.23.(Round to the nearest cent.)
Part 2
b. What is the present value of the following set of cash flows, discounted at 9.5% per year?
Year
1
2
3
4
5
CF
$ 54
$ 43
$ 32
$ 21
$ 10
The present value of the cash flow stream is
141.22.(Round to the nearest cent.)

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