Income Stream End of Year A B 1 $4,000 $1,000 2 $3,000 $2,000 3 $2,000 $3,000 4 $1,000 $4,000 Total $10,000 $10,000

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a. Find the present value of each income stream, using a discount rate of 3%, 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 $10,000 in each case.