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Present value-Mixed streams Consider themed streams of cash flows shown in the following them a. Find the present value of each stream using a %

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Present value-Mixed streams Consider themed streams of cash flows shown in the following them a. Find the present value of each stream using a % discount rate b. Compare the calculated present values and discuss them in light of the undiscounted cash flow totaling $40.000 in each case is there some discourse which the present of the two streams would be equal The preservates of the cash flow of stream Ass Round to the newest dow) Enter your answer in the box and then the check Answer part Year 1 AW N O Cash flow stream A B $- 30,000 $10,000 $25,000 $15,000 $20,000 $20,000 $15,000 $25,000 $10,000 $ - 30,000 $40,000 $40,000 Totals Present valueMixed streams Consider the mixed streams of cash flows shown in the following table. E 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 $40,000 in each case. Is there some discount rate at which the present values of the two streams would be equal? a. To calculate the present value of the mixed stream of cash flows, find the present value of each cash flow for years 1 through 4. Then, add all the computed present values together, along with the cash flow from year to find the total present value of the stream. The present value, PV, of some future amount. FV, to be received n periods from now, assuming an interest rate (or opportunity cost) of r, is calculated as follows: FV PV = (1+1)

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