Question: Use the Present Value of $1 table (Appendix B, Table B-1) to determine the present value of $1 received one year from now. Assume an

Use the Present Value of $1 table (Appendix B, Table B-1) to determine the present value of $1 received one year from now. Assume an 8% interest rate. Use the same table to find the present value of $1 received two years from now. Continue this process for a total of five years.
Requirements
1. What is the total present value of the cash flows received over the five-year period?
2. Could you characterize this stream of cash flows as an Why or why not?
3. Use the Present Value of of $1 table (Appendix B, Table B-2) to determine the present value of the same stream of cash flows. Compare your results to your answer to Requirement 1.
4. Explain your findings.

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