Question: Relationship between future value and present value -- Mixed stream Using the information in the accompanying table answer the questions that follow a. Determine the
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 lows 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 moved 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 assuring that you can at best earn 4% on your investments? a. The present value of the moved stream of cash flows using a 4% discount rate is $ (Round to the nearest cont) Data table (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet Year (0 Cash flow 0 SO 1 5000 2 5800 3 $1,200 14 $1,400 5 $1,900
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