What is the value of each cash flow stream at interest rate

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Uneven Cash Flow Stream

Find the present values of the following cash flow streams. The appropriate interest rate is 7%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows.

Year Cash          Stream A            Cash Stream B

1                        $100                        $300

2                            400                      400

3                          400                         400

4                            400                        400

5                            300                       100

Problem 1: What is the value of each cash flow stream at a 0% interest rate?

Reference no: EM132993229

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