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Summary: Time Value of Money 0 $50,000 810000 '1 40,000 20,000 2 30,000 30,000 3 20,000 40,000 4 10.000 00,000 Totals 8 50.000 8 50,000

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Summary: Time Value of Money 0 $50,000 810000 '1 40,000 20,000 2 30,000 30,000 3 20,000 40,000 4 10.000 00,000 Totals 8 50.000 8 50,000 a. Find the present value of each stream using a 5913 discount rate. b. Compare the calculated present values and discuss them in light of the undiscountecl cash ows totaling 9550000 in each case. [5 there some discount rate at Twhich the present values of the two streams would be equal

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