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Relationship between future value and present value-Mixed stream Using the information in the accompanying table,, 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,, answer the questions that follow. a. Determine the present value of the mixed stream of cash flows using a 6% 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 6% 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 6% 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 beste a 6% on your investments? a. The present value of the mixed stream of cash flows using a 6% discount rate is $ |. (Round to the nearest cent.) Data Table (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 2 3 4 5 $0 $700 $1,000 $1,100 $1,400 $2,100
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