Question: Problems: 1. Consider the cash flow set in the figure below. For all parts, use a discount rate of d = 6%. $ 400 $

Problems: 1. Consider the cash flow set in the figure below.

Problems: 1. Consider the cash flow set in the figure below. For all parts, use a discount rate of d = 6%. $ 400 $ 300 $ 200 $ 200 3 0 1 2 5 6 7 8 $ 300 a) Find the present value Po, for the cash flow set by shifting each cash flow to the present time. b) Find the future value of the cash flow set in year 8, F8, by shifting each cash flow to year 8. c) Ensure that your calculation is correct by shifting the present value into year 8

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