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Present value Mixed streams Consider the mixed streams of cash flows shown in the following table, a.Find the present value of each stream using a
Present value Mixed streams
Consider the mixed streams of cash flows shown in the following table,
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 $50,000 in each case. Is there some discount rate at which the present values of the two streams would be equal?
(Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below Year A AWN-O Cash flow stream B $-37,500 $12,500 $31,250 $18,750 $25,000 $25,000 $18,750 $31,250 $12,500 $-37,500 $50,000 $50,000 TotalsStep by Step Solution
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