Uneven Cash Flow Stream

Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculators cash flow register, you must enter CF0=0. Note also that it is quite easy to work the problem with Excel, using procedures described in the file Ch04 Tool Kit.xlsx.)

Year	Cash stream A	Cash stream B
1	$100	$300
2	$400	$400
3	$400	$400
4	$400	$400
5	$300	$100

1. What is the value of each cash flow stream at a 0% interest rate?