P5-36 Relationship between future value and present value: Mixed stream

Relationship between future value and present value: Mixed stream Using the infor- mation in the accompanying table, answer the questions that follow. P5-36 Year Cash flow 800 900 1,000 1,500 2,000 4 a. Determine the present value of the mixed stream of cash flows, using a 5% dis- count rate. b. Suppose you had a lump sum equal to your answer in part a on hand today. If you invested this sum for 5 years and earned a 5% return each year, how much would you have after 5 years? interest rate. Compare your answer here to your answers in part b. best earn 5% on your investments? c. Determine the future value 5 years from now of the mixed stream, using a 5% d. How much would you be willing to pay for this stream, assuming that you can at