What is the present value of this cash stream

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1. You are offered an investment that will pay you $1000, $1200, $1500, $1700, $2000, $2500, $3000, and $3500 over the next eight years (one cash payment per year). You require an 8% return on your investment. What is the most you would invest today? (In other words, what is the present value of this cash stream?) Round to the nearest cent.

2. You are offered an investment that will pay you $5588 every year for 27 years. If you require a 13.6% return on investments with the same levels of risk, how much are you willing to invest today? Answer and round to the nearest cent.

Reference no: EM131964167

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