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7. Problem 5.18 (Uneven Cash Flow Stream)

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5-12: Uneven Cash Flows

Stream A

Stream B

Stream A: $

$0

$0

Problem Walk-Through

e following cash flow streams at a 12% discount rate. Do not round intermediate calculations. Round your answers to the nearest cent.

2 3 4

5

$100 $450

$450

$450

$300 $450 $450 $450

$300

$100

Stream B: $

b. What are the PVs of the streams at a 0% discount rate? Round your answers to the nearest dollar.

Stream A: $

Stream B: $