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Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem...
Find the present values of the following cash flow streams. The appropriate interestrate is 8%. (Hint: It is fairly easy to work this problem dealing with the individualcash flows. However, if you have a financial calculator, read the section of the manualthat describes how to enter cash flows such as the ones in this problem. This will takea little time, but the investment will pay huge dividends throughout the course. Notethat, when working with the calculator’s cash flow register, you must enter CF0 = 0.Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.)Year Cash Stream A Cash Stream B$300400400400100b. What is the value of each cash flow stream at a 0% interest rate?
Find the present values of the following cash flow streams. The appropriate interest rateis 8%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows.However, if...