Q13.

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 vaiue of the moed stream of cash flows using a 4% discoun tate b. Suppose you had a lump sum equat to your answer in pan a on hand today if you invested this sum for 5 years and earned a 4% return each year, how much Woutd you have ater 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 wiling to pay for an opportunity to buy this stream, assuming that you can at best eam 4% on your investments? Data table (Cick on the icon here 8 in order to copy the contents of the data table below into a spreadsheet) 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 vaiue of the moed stream of cash flows using a 4% discoun tate b. Suppose you had a lump sum equat to your answer in pan a on hand today if you invested this sum for 5 years and earned a 4% return each year, how much Woutd you have ater 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 wiling to pay for an opportunity to buy this stream, assuming that you can at best eam 4% on your investments? Data table (Cick on the icon here 8 in order to copy the contents of the data table below into a spreadsheet)