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Consider the following cash flows. All market interest rates are 12% Year 0 1 2 3 4 Cash Flow 160 170 180 230 a. What

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Consider the following cash flows. All market interest rates are 12% Year 0 1 2 3 4 Cash Flow 160 170 180 230 a. What price would you pay for these cash flows? What total wealth do you expect after 3 years if you sell the rights to the remaining cash flows? Assume interest rates remain constant. (6 points) b. Immediately after buying these cash flows, all market interest rates drop to 10% What is the impact on your total weatth after 3 years? (6 points)

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