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 $4\%$ discount rate.

b$.$ Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $$30,000$ in each case. Is there some discount rate at

which the present values of the two streams would be equal?

a$.$ The present value of the cash flows of stream $A$ is $

$.($Round to the nearest dollar.$)$

The present value of the cash flows of stream $B$ is $

$($Round to the nearest dollar.$)$

b$.$ Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $$30,000$ in each case. $($Select the best answer below.$)$

A$.$ Cash flow stream $A,$ with a present value of $$25,809,$ is higher than cash flow stream B$\text{'}$s present value of $$29,621$ because the negative cash inflow

occurs in $A$ in the later years when their present value is greater, while the negative cash flows are received in the earlier years.

B$.$ Cash flow stream A$,$ with a present value of $$25,809,$ is lower than cash flow stream B$\text{'}$s present value of $$29,621$ because the negative cash inflow occurs

in A in the early years, while the positive cash flows are received further in the future.

C$.$ Cash flow stream $A,$ with a present value of $$29,621,$ is higher than cash flow stream B$\text{'}$s present value of $$25,809$ because the positive cash inflows occur

in $A$ in the earlv vears when their present value is areater. while the neaative cash flows is received further in the future.Data table

$($Click on the icon here in order to copy the contents of the data table

below into a spreadsheet.$)$