Find the present value of each stream

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Present valuelong dash—Mixed streams. Consider the mixed streams of cash flows shown in the following? table,

a. Find the present value of each stream using a 13?% discount rate.

b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ?$125,000 in each case.

Cash flow stream Year A B 1 ?$37,500 ?$12,500 2 ?$31,250 ?$18,750 3 ?$25,000 ?$25,000 4 ?$18,750 ?$31,250 5 Modifying $12,500 Modifying $37,500 Totals Modifying $125,000 Modifying $125,000.

Reference no: EM131821628

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