# Consider the mixed streams of cash flows shown in the following table. a. Find the present value

## Question:

a. Find the present value of each stream using a 15% discount rate.

b. Compare the calculated present values and discuss them in light of the fact that the undiscounted cash flows total $150,000 in eachcase.

What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...

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**Related Book For**

## Principles Of Managerial Finance

**ISBN:** 978-0136119463

13th Edition

**Authors:** Lawrence J. Gitman, Chad J. Zutter