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Present value long dash Mixed streamsConsider the mixed streams of cash flows shown in the following table. Cash Flow Stream Year A B 1 $30,000
Present value long dash Mixed streamsConsider the mixed streams of cash flows shown in the following table.
Cash Flow Stream
Year A B
1 $30,000 $10,000 2 $25,000 $15,000 3 $20,000 $20,000 4 $15,000 $25,000 5 $10,000 $30,000 Totals $100,000 $100,000
a.Find the present value of each stream using a 11% discount rate.
b.Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $100,000 in each case
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