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The following cash-flow streams need to be analyzed: Cash flow stream End of Year 1 2 3 4 5 A 150 1200 -200 300 -400
The following cash-flow streams need to be analyzed:
Cash flow stream |
| End of Year |
|
|
|
| 1 | 2 | 3 | 4 | 5 |
A | 150 | 1200 | -200 | 300 | -400 |
B | 600 | 0 | 500 | -200 | 200 |
Requirements:
- Calculate the total future (terminal) value of each cash flow pattern at the end of year 5 with a compound annual interest rate of 11 percent.
- Compute the total present value of each cash flow pattern if the discount rate is 15 percent.
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