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Question: Present value - Mixed streams Consider the mixed streams of cash flows shown in the following? table

Cash Flow Stream
Year	A	B
1	$22,500	$7,500
2	$18,750	$11,250
3	$15,000	$15,000
4	$11,250	$18,750
5	$7,500	$22,500
Totals	$75,000	$75,000

(a) Find the present value of each stream using a 11?% discount rate

(b) Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ? $75,000 in each case.

(c) Show computations using an Excel Spreadsheet. When solving for the present value of a single cash flow using an Excel? spreadsheet, you will need to enter the values of? Rate, Nper,? Fv, Pmt, and Type into the present value function

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92886411

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