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 7% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $80,000 i 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 $80,000 in each case. (Select the best answer below.) A. Cash flow stream A, with a present value of $61,413, is lower than cash flow stream B's present value of $78,016 because the negative cash inflow occurs in A in the early years, while the positive cash flows are received further in the future. B. Cash flow stream A, with a present value of $61,413, is higher than cash flow stream B's present value of $78,016 because the negative cash inflow occurs in A in the later years when their present value is greater, while the negative cash flows are recelved in the earlier years. C. Cash flow stream A, with a present value of $61,413, is higher than cash flow stream B's present value of $78,016 because the positive cash inflows occur in A in the early years when their present value is greater, while the negative cash flow is received further in the future. D. Cash flow stream A, with a present value of $78,016, is higher than cash flow stream B's present value of $61,413 because the positive cash inflows occur in A in the early years when their present value is greater, while the negative cash flows is received further in the future. \begin{tabular}{crr} \hline & \multicolumn{2}{c}{ Cash flow stream } \\ \cline { 2 - 3 } Year & \multicolumn{1}{c}{ A } & \multicolumn{1}{c}{B} \\ \hline 0 & $60,000 & $20,000 \\ 1 & $50,000 & $30,000 \\ 2 & $40,000 & $40,000 \\ 3 & $30,000 & $50,000 \\ 4 & $20,000 & $60,000 \\ \cline { 2 - 3 } Totals & $80,000 & $80,000 \\ \hline \end{tabular}