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Given the mixed streams of cash flows shown in the Table below, answer parts (a)...

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Accounting

Given the mixed streams of cash flows shown in the Table below, answer parts (a) and (b).

Cash Flow Stream
Year Alpha Beta
1 R150,000 R110,000
2 R140,000 R120,000
3 R130,000 R130,000
4 R120,000 R140,000
5 R110,000 R150,000
Totals R650,000 R650,000

a. Find the present value of each stream, using a 18% discount rate

b. compare the present values, and explain why they vary even though both streams pay R650,000 over five years.

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