Period cash flow

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Given the following:
Period Cash flow
1 $30,000
2 $25,000
3 $20,000
4 $15,000
5 $10,000
a. If your required rate of return is 8% per year, what is the present value of the above cash flows? Future value?
b. Suppose you are offered another investment that is identical, except that the cash flows are reversed (i.e. cash flow is 10,000). Is this worth more or less that the original investment?
c. If you paid $75,000 for the original investment, what average annual rate of return would you earn? What return would you earn on the reversed cash flows?
d. Still assuming that your required return is 8%, would you be willing to purchase either of these investments?
I need the answer in Excel with formulas.

Reference no: EM13663928

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