P5-39 Relationship between future value and present value: Mixed stream Using the in- formation in the accompanying table, answer the questions that follow. Assume all transactions take place at the end of the year. Year 1 2 3 4 5 6 Cash flow $ 3,000 0 4,000 8,000 12,000 6,000 a a. Using a discount rate of 7%, determine the present value of the cash flows. b. Suppose you had a lump sum cqual to your answer in part a. You invested this sum in an account earning a 7% return cach year. How much would you have after six years? c. Calculate the future value of cash flows six years from now and compare it to your answer in part b. d. How much would you be willing to pay for this, assuming that you can earn 7% on your investments