What is the present value of these cash flow streams

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Reference no: EM132071509

1. An investment promises the following cash flow streams at the end of each year: $1,000 at year 1 through 4; $2,000 at year 5 through 10; $3,000 at year 11 through 13; and $5,000 at year 14 through 15. At a discount rate of 5%, what is the present value of these cash flow streams?

2. You want to go to grad school 3 years from now, and you can save $5,000 per year for consecutive three years, beginning immediately. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have 3 years from now?

A. $14,976.84

B. $16,110.34

C. $17,513.68

D. $17,865.65

E. $18,349.15

Reference no: EM132071509

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