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Data table Income Stream End of Year A B 1 2 $10,000 $7,000 $9,000 $8,000 3 4 Total $8,000 $9,000 $7,000 $10,000 $34,000 $34,000
Data table Income Stream End of Year A B 1 2 $10,000 $7,000 $9,000 $8,000 3 4 Total $8,000 $9,000 $7,000 $10,000 $34,000 $34,000 D (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 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 7%. b. Compare the calculated present values and discuss them in light of the fact that the undiscounted total income amounts to $34,000 in each case. a. The present value of income stream A, using a discount rate of 2% is $ (Round to the nearest cent.)
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