Question: Problem 4-14 Uneven Cash Flow Stream Find the present values of the following cash flow streams. The appropriate interest rate is 10%. Round your answers

Problem 4-14 Uneven Cash Flow Stream

  1. Find the present values of the following cash flow streams. The appropriate interest rate is 10%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0 = 0. Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.)
    Year Cash Stream A Cash Stream B
    1 $100 $300
    2 400 400
    3 400 400
    4 400 400
    5 300 100
    Stream A $ Stream B $
  2. What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent. Stream A $ Stream B $

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