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Homework: HW Ch5 Part 1 of 3 O Points: 0 of 10 Sav Present value: Mixed streams Consider the mixed streams of cash flows
Homework: HW Ch5 Part 1 of 3 O Points: 0 of 10 Sav Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 8% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $30,000 in each case. Is there some discount rate at which the present values of the two streams would equal? Data table a. The p (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Cash flow stream Year A B 0 $ -22,500 $7,500 1 $18,750 $11,250 2 $15,000 $15,000 3 $11,250 $18,750 4 $7,500 $ -22,500 Totals $30,000 $30,000 - X
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