# Find the present values of the following cash flow streams. The appropriate interest rate is 12%….

Find the present values of the following cash flow streams. The

appropriate interest rate is 12%. (Hint: It is fairly easy to work

this problem dealing with the individual cash flows. However, if

you have a financial calculator, read the section of the manual

that describes how to enter cash flows such as the ones in this

problem. This will take a little time, but the investment will pay

huge dividends throughout the course. Note that, when working with

the calculator’s cash flow register, you must enter CF0 = 0. Note

also that it is quite easy to work the problem with Excel, using

procedures described in the Ch04 Tool Kit.xlsx.) Do not round

intermediate calculations. Round your answers to the nearest

cent.

Year Cash Stream A Cash Stream B 1 $100 $250 2 400 400 3 400 400

4 400 400 5 250 100 Stream A: $ Stream B: $ What is the value of

each cash flow stream at a 0% interest rate? Round your answers to

the nearest dollar. Stream A $ Stream B $