Question: Using a financial calculator or an Excel spreadsheet, calculate the following. a. The present value of $500 to be received four years from now, using
Using a financial calculator or an Excel spreadsheet, calculate the following.
a. The present value of $500 to be received four years from now, using an 11% discount rate.
b. The present value of the following end-of-year income streams, using a 9% discount rate and assuming it is now the beginning of 2018.
End of Year ______Income Stream A ________Income Stream B
2018 .......................... $80 .......................................... $140
2019 ......................... $80 .......................................... $120
2020 ......................... $80 .......................................... $100
2021 ......................... $80 .......................................... $ 80
2022 ......................... $80 .......................................... $ 60
2023 ......................... $80 ......................................... $ 40
2024 ......................... $80 ......................................... $ 20
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