(Present value of complex cash flows)You have an opportunity to make an investment that will pay $200 at the end of the first year, $200 at the end of the second year, $100 at the end of the third year, $300 at the end of the fourth year, and $100 at the end of the fifth year.

a.Find the present value if the interest rate is 9 percent. (Hint: You can simply bring each cash flow back to the present and then add them up. Another way to work this problem is to either use the =NPV function in Excel or to use your CF key on a financial calculatorbut you'll want to check your calculator's manual before you use this key. Keep in mind that with the =NPV function in Excel, there is no initial outlay. That is, all this function does is bring all the future cash flows back to the present. With a financial calculator, you should keep in mind that CF0 is the initial outlay or cash flow at time 0, and, because there is no cash flow at time 0, CF0=0.)

b.What would happen to the present value of this stream of cash flows if the interest rate were zero percent?