# Calculate and rank the equivalent values eight years from now of the following cash flow streams: (i)

## Question:

(i) A single payment of $5000 today.

(ii) An ordinary annuity starting today with eight annual payments of $910.

(iii) An ordinary annuity starting in three years with five annual payments of $1675.

Do the calculations and ranking for each of the following two cases:

a. Money can earn 8% compounded annually for the next eight years.

b. Money can earn 10% compounded annually for the next eight years. 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,...

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