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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:

  1. 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.

  1. Compute the total present value of each cash flow pattern if the discount rate is 15 percent.

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