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

 

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Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $60,000 in each case. Is there some discount rate at which the present values of the two streams would be equal? Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Cash flow stream Year A B $-45,000 $15,000 1 $37,500 $22,500 23 $30,000 $30,000 $22,500 $37,500 4 $15,000 $-45,000 Totals $60,000 $60,000 Consider the mixed streams of cash flows shown in the following table, a. Find the present value of each stream using a 5% discount rate. b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling $60,000 in each case. Is there some discount rate at which the present values of the two streams would be equal? Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Cash flow stream Year A B $-45,000 $15,000 1 $37,500 $22,500 23 $30,000 $30,000 $22,500 $37,500 4 $15,000 $-45,000 Totals $60,000 $60,000