Year Cash Stream A Cash Stream B 1 $100 $300 2 400 400 3 400 400 4 400 400 5 300 100 Stream A $ $1,327.20 Stream B $ $1,366.43 What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent. {PLEASE ANSWER THIS PART OF THE QUESTION)
Year Cash Stream A Cash Stream B 1 $100 $300 2 400 400 3 400 400 4 400 400 5 300 100 Stream A $ $1,327.20 Stream B $ $1,366.43 What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent. {PLEASE ANSWER THIS PART OF THE QUESTION)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- Find the
present values of the following cash flow streams. The appropriate interest rate is 6%. 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. Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.)
|
Year |
Cash Stream A |
Cash Stream B |
|
1 |
$100 |
$300 |
|
2 |
400 |
400 |
|
3 |
400 |
400 |
|
4 |
400 |
400 |
|
5 |
300 |
100 |
Stream A $ $1,327.20
Stream B $ $1,366.43
What is the value of each cash flow stream at a 0% interest rate? Round your answers to the nearest cent. {PLEASE ANSWER THIS PART OF THE QUESTION)
Stream A $
Stream B $
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