Use the Present Value of $$1$ table to determine the present value of $$1$

received one year from now. Assume a $6\%$ interest rate. Use the same

table to find the present value of $$1$ received two years from now.

Continue this process for a total of five years.

$($Click the icon to view the present value factor table.$)$

$($Click the icon to view the present value annuity factor table.$)$

a$.$ What is the total present value of the cash flows received

over the five$-$year period?

b$.$ Could you characterize this stream of cash flows as

an annuity? Why or why not?

c$.$ Use the Present Value of Annuity of $$1$ table to determine

the present value of the same stream of cash flows.

Compare your results to your answer to Part A$.$

d$.$ Explain your findings.

a$.$ What is the total present value of the cash flows received over the five$-$year period? $($Round all amounts to three decimal places.$)$