Question: 4 P5-31 Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Year 1 2 3 Cash flow stream

 4 P5-31 Present value: Mixed streams Consider the mixed streams of

4 P5-31 Present value: Mixed streams Consider the mixed streams of cash flows shown in the following table. Year 1 2 3 Cash flow stream A B $ 50,000 $ 10,000 40,000 20,000 30,000 30,000 20,000 40,000 10,000 50,000 $150,000 $150,000 4 S Totals 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 undis- counted cash flows totaling $150,000 in each case

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