Fin 310 ch 3 open-ended assignment

Consider the following cash flow streams, where each cash flow is coming in or going out at the end of each annual period: Year Stream A Stream B Stream C 1 1,234 6,200 3,844 2 2,567 5,100 3,844 3 3,300 4,632 3,845 4 4,256 4,000 3,845 5 5,211 2,223 3,845 6 6,500 913 3,845 Totals 23,068 23,068 23,068 Required: A. Find the present value of the cash flows in stream A at an interest rate of 6%. B. Find the present value of the cash flows in stream B at an interest rate of 6%. C. Find the present value of the cash flows in stream Cat an interest rate of 6%. D. If you, as a profit maximizer, are on the receiving side of these cash flow Which stream of cash flows would be the best for you? A B Year 1 2 3 4 5 6 Present value Year 1 2 3 4 5 6 Present value Year 1 Cashflow 2 3 4 5 6 Present value Cashflow Cashflow 6% Present Value Factor Extension 6% Present Value Factor 6% Present Value Factor Extension Extension