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Present value dashMixed streams Consider the mixed stream streams shown in the table below, year EU 1 $37,500 $12,500 2 31,250 dollars $18,750 3 25.000

Present value dash—Mixed streams Consider the mixed stream streams shown in the table below,

year EU

1$37,500$12,500
231,250 dollars$18,750
325.000 $25.000 $
4$18,75031.250 $
5$12,50037.500 $
totals125.000 $

125.000 $

A. Find the present value of each flow using the 12% discount rate.

B. Compare the calculated current values and discuss in light of the undiscounted cash flows totaling $125,000 in each case.

A. Present value of cash flows of flow A

$.

(Round to the nearest dollar.)

Present value of cash flows of stream B

$.

(Round to the nearest dollar.)

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