You have an opportunity to make an investment that will pay
$300 at the end of the first year, $500 at the end of the
second year, $400 at the end of the third year, $100 at the end
of the fourth year, and $ 200 at the end of the fifth year.
a. Find the present value if the interest rate is 6 percent.
b. What would happen to the present value of this stream of cash
flows if the interest rate were zero percent?
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