Determine the present values of the given cash flow streams

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Find the present values of the following cash flow streams. The appropriate interest rate is 11%. Round your answers to the nearest cent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator's cash flow register, you must enter CF0 = 0.

Year

Cash Stream A

Cash Stream B

1

$100

$300

2

 400

 400

3

 400

 400

4

 400

 400

5

 300

 100

What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent.

Reference no: EM13475650

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