Question

1. Find the present values of the following cash flow streams at an 11% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent.

   0

   1

   2

   3

   4

   5

   Stream A	$0	$150	$450	$450	$450	$300
   Stream B	$0	$300	$450	$450	$450	$150

   Stream A: $  

   Stream B: $  

2. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar.

   Stream A: $  

   Stream B: $  

Answer 1

Part 1

Present Value when Discount rate 11% per anum

Part 2

Present Value when Discount rate 0% per anum

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