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Consider a Cash Flow Stream of equal amounts of 1500 dollars for 8 years and a discount rate of 10%. Calculate the PVOA and the

Consider a Cash Flow Stream of equal amounts of 1500 dollars for 8 years and a discount rate of 10%.

  1. Calculate the PVOA and the FVOA, by using the Annuity Formulae that you have learned in your class.
  2. Calculate the PVAD and the FVAD.
  3. Show that the PVAD exceeds PVOA.
  4. Show that the FVAD exceeds FVOA.

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