Consider a stream of 27 cash flows of $250 beginning exactly 3 years from today,...
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Finance
Consider a stream of 27 cash flows of $250 beginning exactly 3 years from today, followed by another stream of cash flows (starting exactly 6 years after the first stream ends) growing at 3% annually if the first cash flow (in this second stream) is $300? (Assume the appropriate discount rate, for both discounting and compounding, is 10% and that the second stream continues for a total of 30 years.) a) Assuming the above streams are cash inflows, what is the total present value (now) of the two cash flow streams above? b) Assuming the above streams are deposits into an account, what is the total future value of the two cash flow streams at the date of the last cash flow is deposited (and they earned the 10% rate while the cash was in the account)?
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