1. Given the following stream of cash flows at the end of each of the next five years:

Year	Cash Flow
1	100
2	400
3	100
4	50
5	500

a. Calculate the Present Value of these cash flows if the discount rate is 12% per year.

b. What is the PV here if the discount rate is instead 8% per year?

c. If the PV of these cash flows were $1,000, what must be the discount rate?

2- Answer the following questions given the following stream of end-of-year cash flows.

Year	Cash Flow
1	500
2	500
3	500
4	800
5	800
6	800
7	1200
8	1200
9	1200

a. Solve for PV, given discount rates of: 0%, 5%, 10% and 15%

b. Graph the PV results from (a) as a function of the discount rate