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Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table, B a. Find the present value of each stream
Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table, B a. Find the present value of each stream using a 8% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $70,000 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 0 1 2 3 Cash flow stream A B $-52,500 $17,500 $43,750 $26,250 $35,000 $35,000 $26,250 $43,750 $17,500 $-52,500 $70,000 $70,000 4 Totals
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