Question
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
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 $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.)
a. The present value of the cash flows of stream B is $. (Round to the nearest dollar.)
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