Question
Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 14%. Round your answers to the
Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The appropriate interest rate is 14%. Round your answers to the nearest cent. (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 calculator's 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 Chapter 4 Tool Kit.)
| Year | Cash Stream A | Cash Stream B |
| 1 | $100 | $300 |
| 2 | 400 | 400 |
| 3 | 400 | 400 |
| 4 | 400 | 400 |
| 5 | 300 | 100 |
Stream A $ = ? Stream B $ = ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started