Using the information in this table , answer the questions that follow:

a. Determine the present value of the mixed stream of cash flows using a 5% discount rate.

b. Suppose you had a lump sum equal to your answer in part (a) on hand today. If you invested this sum for five years and earned a 5% return each year, how much would you have after five years?

c. Determine the future value five years from now of the mixed stream using a 5% discount rate. Compare your answer here to your answers in part (b).

d. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your investments?

a. The present value of the mixed stream of cash flows is $ ( ). (Round to the nearest cent.)

b. The future value is $ ( ). (Round to the nearest cent.)

c. The future value is $ ( ). (Round to the nearest cent.)

d. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your investments?(Select the best answer below.)

A.The pay you would pay today to acquire this stream is $6,769.15, which is the present value determined in part (c).

B.The pay you would pay today to acquire this stream is $5,303.81, which is the future value determined in part (a).

C.The pay you would pay today to acquire this stream is $6,769.15, which is the future value determined in part (b).

D.The pay you would pay today to acquire this stream is $5,303.81, which is the present value determined in part (a).

Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year Cash Flow $0 810 930 1,000 1,510 5 2,020 0 1 2 3 4 Print Done