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Consider the streams of income given in the following table: Income Stream End of Year A B 1 $4,000 $1,000 2 $3,000 $2,000 3 $2,000
Consider the streams of income given in the following table:
Income Stream
End of Year A B
1 $4,000 $1,000
2 $3,000 $2,000
3 $2,000 $3,000
4 $1,000 $4,000
Total $10,000 $10,000
a. Find the present value of each income stream, using a discount rate of 4%, then repeat those calculations using a discount rate of 9 %
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