Question
Uneven Cash Flow Stream 1) What are the present Values of the following cash flow streams if they are compounded at 5% annually? 2) What
Uneven Cash Flow Stream
1) What are the present Values of the following cash flow streams if they are compounded at 5% annually?
2) What are the PVs of the streams at 0 percent compounded annually?
| 0 | 1 | 2 | 3 | 4 | 5 | |
| Stream A | $0 | $100 | $400 | $400 | $400 | $300 |
| Stream B | $0 | $300 | $400 | $400 | $400 | $100
|
PV (A) @ 5% is $1,302.59 @ 0% is $1,600
PV (B) @ 5% is $1,334.76 @ 0 % is $1,600
Is this correct?
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Innovation And Technology
Authors: Nikos Vernardakis
1st Edition
0415676800, 978-0415676809
