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UNEVEN CASH FLOW STREAM Find the present values of the following cash flow streams at a 9%...

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Finance

UNEVEN CASH FLOW STREAM

  1. Find the present values of the following cash flow streams at a9% discount rate. Round your answers to the nearest cent.
    012345
    Stream A$0$150$400$400$400$300
    Stream B$0$300$400$400$400$150

    Stream A $  

    Stream B $  

  2. What are the PVs of the streams at a 0% discount rate?

    Stream A $  

    Stream B $  

Answer & Explanation Solved by verified expert
4.1 Ratings (583 Votes)

Ans a) Stream A $ 1261.51

Stream B $ 1301.63

b) Stream A: $ 1650

Stream B: $ 1650

STREAM A
Year Project Cash Flows (i) DF@ 9% DF@ 9% (ii) PV of Project ( (i) * (ii) ) DF@ 0% (ii) PV of Project A ( (i) * (ii) )
0 0 1 1                                    -   1                        -  
1 150 1/((1+9%)^1) 0.917                           137.61 1.000               150.00
2 400 1/((1+9%)^2) 0.842                           336.67 1.000               400.00
3 400 1/((1+9%)^3) 0.772                           308.87 1.000               400.00
4 400 1/((1+9%)^4) 0.708                           283.37 1.000               400.00
5 300 1/((1+9%)^5) 0.650                           194.98 1.000               300.00
NPV                       1,261.51 NPV            1,650.00
STREAM B
Year Project Cash Flows (i) DF@ 9% DF@ 9% (ii) PV of Project ( (i) * (ii) ) DF@ 0% (ii) PV of Project A ( (i) * (ii) )
0 0 1 1                                    -   1                        -  
1 300 1/((1+9%)^1) 0.917                           275.23 1.000               300.00
2 400 1/((1+9%)^2) 0.842                           336.67 1.000               400.00
3 400 1/((1+9%)^3) 0.772                           308.87 1.000               400.00
4 400 1/((1+9%)^4) 0.708                           283.37 1.000               400.00
5 150 1/((1+9%)^5) 0.650                             97.49 1.000               150.00
NPV                       1,301.63 NPV            1,650.00

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Transcribed Image Text

UNEVEN CASH FLOW STREAMFind the present values of the following cash flow streams at a9% discount rate. Round your answers to the nearest cent.012345Stream A$0$150$400$400$400$300Stream B$0$300$400$400$400$150Stream A $  Stream B $  What are the PVs of the streams at a 0% discount rate?Stream A $  Stream B $  

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