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Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Cash flow stream Year $50,000 $10,000 20,000 30,000 30,000
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Cash flow stream Year $50,000 $10,000 20,000 30,000 30,000 20,00040,000 -50,000 Totals $50,000 $50,000 0 40,000 4 10,000 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 undis- flows totaling $50,000 in each case. Is there some discount rate at counted cash which the present values of the two streams would be equal
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