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Present—Mixed streams Consider the mixed streams of cash flows shown in the following​ table, a.  Find...

Present—Mixed streams Consider the mixed streams of cash flows shown in the following​ table,

a.  Find the present value of each stream using a 6% discount rate.

b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ​$80,000 in each case. Is there some discount rate at which the present values of the two streams would be​ equal?

year stream a stream b

1 -60,000   20,000
2 50,000   30,000
3 40,000   40,000
4 30,000   50,000
5 20,000 -60,000
Totals   80,000 80,000

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jeff jeffy answered 1 year ago
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