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Uneven Cash Flow Stream
Question 1: Find the present values of the following cash flow streams. The appropriate interest rate is 11%. (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. Do not round intermediate calculations. Round your answers to the nearest cent.
Year Cash Stream A Cash Stream B
1 $100 $200
2 400 400
3 400 400
4 400 400
5 200 100
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