Relationship between future value and present value-Mixed stream Using the information in the accompanying table...
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Relationship between future value and present value-Mixed stream Using the information in the accompanying table answer the questions that follow a. Determine the present value of the mixed stream of cash flows using a 5% discount rate b. Suppose you had a lump sum equal to your answer in part a on hand today If you invested this sum for 5 years and earned a 5% return each year, how much would you have after 5 years? c. Determine the future value 5 years from now of the mixed stream using a 5% interest rate Compare your answer here to your answer in part b d. How much would you be willing to pay for an opportunity to buy this stream assuming that you can at best earn 5% on your investments? he nearest Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Year (1) Cash flow 0 $0 1 $800 2 $900 3 $1,200 $1,500 $1,900 4 Print Done

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