Test: al - B Time Remaining: 01:47:59 Submit Test This Question: 12 pts 11 of 25 (8 complete This Test: 100 pts possible Present value---Mixed streams Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 8% discount rate b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $70,000 in each case, is there some discount rate at which the present values of the two streams would be equal? a. The present value of the cash flows of stream Als $). (Round to the nearest dollar.) The present value of the cash flows of stream Bis $(Round to the nearest dollar.) b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $70,000 in each case. (Select the best answer below.) O A. Cash flow stream A with a present value of $51,717, is higher than cash flow stream B's present value of $67,954 because the positive cash inflows occur in A in the early years when their present value is greater, while the negative cash flow is received further in the future. OB. Cash flow stream A with a present value of $51.717, is higher than cash flow stream B's present value of $67,954 because the negative cash inflow occurs in A in the later years when their present value is greater, while the negative cash flows are received in the earlier years. OC. Cash flow stream A, with a present value of $67,954, is higher than cash flow stream B's present value of $51,717 because the positive cash inflows occur in A in the early years when their present value is greater, while the negative cash flows is received further in the future OD. Cash flow stream A with a present value of $51.717. is lower than cash flow stream B's present value of $67.954 because the necative cash inflow curs Click to select your answers) 2 because the p their present value is greater, while the negative ash flow is received further in the future. Dresent value of $51,717, is higher than cash floream B's present value of $67,954 because then Eheir present value is greater, while the negative as ws are received in the earlier years. Dresent value of $67,954, is higher than cash flow stB's present value of $51,717 because the p their present value is greater, while the negative cash flows is received further in the future. resent value of $51.717. is lower than cash flow stream B's present value of $67.954 because the ne 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 0 1 2 AN Cash flow stream B $-52,500 $17,500 $43,750 $26,250 $35,000 $35,000 $26,250 $43,750 $17,500 $-52,500 $70,000 $70,000 Totals Print Done