What is the present value of each cash flow stream

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Consider the following cash flow streams:

Year                Cash Stream A                 Cash Stream B

1                       $100                               $300

2                          400                                  400

3                          400                                 400

4                           400                                 400

5                                300                                100

The appropriate discount rate is 12 percent.

Problem a. What is the present value of each cash flow stream?

Problem b. What is the future value of each cash flow stream?

Problem c. What is the value of each cash flow stream at Year 3?

Reference no: EM132822119

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