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Relationship between future value and present value-Mixed stream Using the information in the accompanying table, EB.answer the questions that follow a. Determine the present value
Relationship between future value and present value-Mixed stream Using the information in the accompanying table, EB.answer the questions that follow a. Determine the present value of the mixed stream of cash flows using a 5% discount rate b. Suppose you had a lump sum equal to your answer in part a on hand today. If you invested this sum for 5 years and earned a 5% return each year, how much would you have after 5 years? c. Determine the future value 5 years from now of the mixed stream, using a 5% interest rate. Compare your answer here to your answer in part b d. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your investments? a. The present value of the mixed stream of cash flows using a 5% discount rate is $ 5243.17 . Data Table b. if you invest the lump sum, after 5 years you would haves(Round to the nearest cent) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year (t) Cash flow $0 $800 $900 $1,000 $1,500 $2,000
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