Question: Example 13: With a 10% interest rate, calculate the present value of the following streams of cashflow $1,000 per year forever $500 per year forever,

Example 13: With a 10% interest rate, calculate the present value of the following streams of cashflow

$1,000 per year forever

$500 per year forever, with the first payment two years from now

$2,420 per year forever, with the first payment three years from now.

Example 14: Suppose you deposit $100 at the end of each year for three years in an account paying 8%. What is the present value of the cash flow stream? (Equal Cash Flow)

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