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Present value: Mixed streams Consider the mixed streams of cash flows shown in the flowing table. ____________ Cash flow streams _________________________ Year A B 1

Present value: Mixed streams Consider the mixed streams of cash flows shown in the flowing table.

____________Cash flow streams_________________________

Year

A

B

1

$ 50,000

$ 10,000

2

40,000

20,000

3

30,000

30,000

4

20,000

40,000

5

10,000

50,000

Totals $ 150,000 $150,000

Find the present value of each stream using a 15% discount rate.

Compare the calculated present value and discuss them in light of the undiscounted cash flow totally $150,000 in each case.

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