Present value: Mixed streams$$

a$.$Find the present value of each stream using a $5\%$ discount rate.

b$.$Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $$40,000$

in each case. Is there some discount rate at which the present values of the two streams would be equal?

Part $1$

The present value of the cash flows of stream A is $($round to the nearest dollar.$)$

a$.0-30,00010,000$

b$.125,00015,000$

c$.220,00020,000$

d$.315,00025,000$

e$.410,000-30,000$

f$.$ Totals $40,00040,000$