Present value dashMixed streams Consider the mixed stream streams shown in the table below, year EU 1 $37,500 $12,500 2 31,250 dollars $18,750 3 25 000 $ 25 000 $ 4 $18,750 31 250 $ 5 $12,500 37 500 $ totals 125 000 $ 125 000 $ A Find the present value of each flow using the 12 discount rate B Comp...

Calculate the present value of each cash flow Present Value PV Cash Flow 1 Discount Raten where PV i ...

Present value dashMixed streams Consider the mixed stream streams shown in the table below, year EU 1

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Present value dash—Mixed streams Consider the mixed stream streams shown in the table below,

year EU

1	$37,500	$12,500
2	31,250 dollars	$18,750
3	25.000 $	25.000 $
4	$18,750	31.250 $
5	$12,500	37.500 $
totals	125.000 $	125.000 $

A. Find the present value of each flow using the 12% discount rate.

B. Compare the calculated current values and discuss in light of the undiscounted cash flows totaling $125,000 in each case.

A. Present value of cash flows of flow A

(Round to the nearest dollar.)

Present value of cash flows of stream B

(Round to the nearest dollar.)

Related Book For answer-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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Posted Date: May 23, 2023 04:08 AM

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Present value dashMixed streams Consider the mixed stream streams shown in the table below, year EU 1

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Principles Of Managerial Finance

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