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Consider two streams of cash flows, A and B . Stream A ' s first cash flow is $ 1 0 , 6 0 0
Consider two streams of cash flows, A and B Stream As first cash flow is $ and is received three years from today. Future cash flows in Stream A grow by percent in perpetuity. Stream Bs first cash flow is $ is received two years from today, and will continue in perpetuity. Assume that the appropriate discount rate is percent.
a What is the present value of each stream? A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to decimal places, eg
tableStream AStream B
b Suppose that the two streams are combined into one project, called What is the IRR of Project CDo not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
IRR
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