Q13) A-D

Relationship between future value and present value- Mixed stream Using the information in the accompanying table, answer the questions that follow. a. Determine the present value of the mixed stream of cash flows using a 4% discount 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 4% roturn each year, how much would you have after 5 years? c. Determine the future value 5 years from now of the mixed stream, using a 4% interest rate. Compare your answer here to your answer in part b d. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 4% on your investments? Relationship between future value and present value- Mixed stream Using the information in the accompanying table, answer the questions that follow. a. Determine the present value of the mixed stream of cash flows using a 4% discount 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 4% roturn each year, how much would you have after 5 years? c. Determine the future value 5 years from now of the mixed stream, using a 4% interest rate. Compare your answer here to your answer in part b d. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 4% on your investments