Question

- Find the present values of the following cash flow streams at
an 8% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0 1 2 3 4 5 Stream A $0 $100 $400 $400 $400 $300 Stream B $0 $300 $400 $400 $400 $100 Stream A: $

Stream B: $

- What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $

Stream B: $

Answer #1

Answer a.

Discount Rate = 8.00%

Stream A:

Present Value = $100/1.08 + $400/1.08^2 + $400/1.08^3 +
$400/1.08^4 + $300/1.08^5

Present Value = $1,251.25

Stream B:

Present Value = $300/1.08 + $400/1.08^2 + $400/1.08^3 +
$400/1.08^4 + $100/1.08^5

Present Value = $1,300.32

Answer b.

Discount Rate = 0.00%

Stream A:

Present Value = $100 + $400 + $400 + $400 + $300

Present Value = $1,600.00

Stream B:

Present Value = $300 + $400 + $400 + $400 + $100

Present Value = $1,600.00

Find the present values of the following cash flow streams at a
6% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$400
$400
$400
$300
Stream B
$0
$300
$400
$400
$400
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

Find the present values of the following cash flow streams at
an 8% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

Find the present values of the following cash flow streams at a
6% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$400
$400
$400
$250
Stream B
$0
$250
$400
$400
$400
$150
Stream A $
Stream B $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A $
Stream B $

Find the present values of the following cash flow streams at a
12% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

Find the present values of the following cash flow streams at a
12% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$450
$450
$450
$250
Stream B
$0
$250
$450
$450
$450
$100
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

Find the present values of the following cash flow streams at a
9% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$450
$450
$450
$250
Stream B
$0
$250
$450
$450
$450
$100
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

Find the present values of the following cash flow streams at a
6% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$350
$350
$350
$250
Stream B
$0
$250
$350
$350
$350
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $

eBook Problem Walk-Through
Find the present values of the following cash flow streams at a
9% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$400
$400
$400
$300
Stream B
$0
$300
$400
$400
$400
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $ ...

A. Find the present values of the following cash flow streams at
a 9% discount rate. Round your answers to the nearest cent.
Stream A
$0
$100
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$100
Stream A $
Stream B $
B. What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $

Find the present values of the following cash flow streams at a
5% discount rate. Round your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$150
Stream A $
Stream B $
What are the PVs of the streams at a 0% discount rate?
Stream A $
Stream B $

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