Find the present value of the year end cash flow stream

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1. It is April 1, 2016 and you need to find the present value of a monthly cash stream that is $1 at the end of the 1st month, and then doubles each odd numbered month but only increases by $1 in even months. The cash stream lasts for a year and the interest rate is 12% compounded monthly.

2. Find the present value of the following year end cash flow stream: 500, (250), 1500, 937, 300, and (412). The interest rate is 11.7 per cent for the first two years, and then increases to 12.6 percent. Interest is compounded semiannually. (Numbers in parentheses are negative.)

Reference no: EM131308112

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