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Relationship between future value and present valueMixed stream Using the information in the accompanying table, answer the questions that follow. a. Determine the present value

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Relationship between future value and present valueMixed 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 5% discount rate. b. 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? c. What effect, if any, would a 7% rather than a 5% opportunity cost have on your analysis? The present value of the mixed stream of cash flows using a 5% discount rate is $ (Round to the nearest cent) Year (t) 1 2 3 Cash flow $900 $900 $1,100 $1,400 $1,900 4 5

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