Use Table A: Present Value of $1 to determine the present value of $1 received one year

Question:

Use Table A: Present Value of $1 to determine the present value of $1 received one year from now. Assume a 14% 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.
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 Why or why not?
c. Use Table B: Present Value of of $1 to determine the present value of the same stream of cash flows. Compare your results to your answer in Part a.
d. Explain your findings.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...