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Present value long dash Mixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each

Present value long dash Mixed streams

Consider the mixed streams of cash flows shown in the following table,

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a. Find the present value of each stream using a 4% discount rate.

b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $20000 in each case. Is there some discount rate at which the present values of the two streams would be equal?

Year Cash flow stream B $- 15,000 $5,000 $12,500 $7,500 $10,000 $10,000 $7,500 $12,500 $5,000 $- 15,000 $20,000 $20,000 Totals

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