Question: Consider two streams or cash flows and Stream A's first cash flow is 59,900 roceed three years from day the flows in stream Agrow by
Consider two streams or cash flows and Stream A's first cash flow is 59,900 roceed three years from day the flows in stream Agrow by 4 percent in perpetuity, Stream is tirst cash flow 3000, curs two years won today and with corde in perpetuity. Assume that the appropriate discount rate is 12 percent a. What is the present value of each stream (Negative amounts should be indicated by a minus syn. Do not found inermed calculations, Round the answers to 2 decimal places, Omit Sign in your response Stream Stre b. Suppose that the two streams are combined into one project, called C What is the IRR of projed C(Do not round intermediate calculations. Round the answer to 2 decimal places.) IRR 19 c. What is the correct IRR rule for Project C? Accept the project if the discount rate is below the IRR. Accept the project if the discount rate is above the IRR O Accept the project if the discount rate is equal the IRR
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