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Q1. What is the present value PV of the following streams of cash flows (CFs), if the discount rate is 7%: a. A stream of

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Q1. What is the present value PV of the following streams of cash flows (CFs), if the discount rate is 7%: a. A stream of 5 consecutive and equal CFs of $5,000, starting next year b. A stream of 5 consecutive and equal CFs of $5,000, starting tomorrow c. A stream of 5 consecutive CFs, starting next year. The first CF =$5,000, and the rest are 20% more than the CF of the prior year. d. A stream of infinite and equal CFs of $2,000, starting next year e. A stream of infinite number of CFs. The first CF starts next year and is equal to $2,000. The rest of the CFs grow at 5% (over the prior year). f. A stream of 10 CFs. The first CF starts next year and is equal to $2,000. Then the next 5 CFs grow at 20% (over the prior year). The next 2 CFs are SO; the last 2 CFs are equal to $27,000. The PV of a stream of 10 CFS is -$25,000. You can think about this as paying 25,000 to receive a stream of 10 CFs. The first CF starts next year and is equal to $2,000. Then the next 5 CF's grow at 20% (over the prior year). The next 2 CFs are S0; the last 2 CFs are equal to $27,000. What is the rate of return of this investment

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