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Given the uneven streams of cash flows shown in the following table, answer parts (a) and (b): End of Year Cash Flow Stream (RM) A
Given the uneven streams of cash flows shown in the following table, answer parts (a) and (b): End of Year Cash Flow Stream (RM) A B 1 60,000 20,000 2 40,000 20,000 3 30,000 30,000 420,000 40,000 5 10,000 50,000 Undiscounted Total 160,000 160,000 a. Find the present value of each stream, using a 17 percent discount rate. (10 marks) b. Compare the calculated present values, and discuss them in light of the fact. that the undiscounted total cash flows amount to RM160,000 in each case
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