Consider the streams of income given in the following table:'

a. Find the present value of each income stream, using a discount rate of 2%,then repeat those calculations using a discount rate of 8%.

b. Compare the calculated present values and discuss them in light of the fact that the undiscounted total income amounts to $18,000 in each case.

End of Year 1 2 3 4 Total Income Stream A B $6,000 $3,000 $5,000 $4,000 $4,000 $5,000 $3,000 $6,000 $18,000 $18,000