Question: (4-14). Uneven Cash Flow Stream a. Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is

(4-14). Uneven Cash Flow Stream a. Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculators cash flow register, you must enter CF0=0CF0=0. Note also that it is quite easy to work the problem with Excel, using procedures described in the file Ch04 Tool Kit.xlsx.)

Year

Cash Stream A

Cash Stream B

1

$100

$300

2

400

400

3

400

400

4

400

400

5

300

100

b. What is the value of each cash flow stream at a 0% interest rate?

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