a. Find the present values of the following cash flow streams. The appropriate interest rate is 8 percent. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note, if you do work with the cash flow register, then you must enter CF0 = 0.)
b. What is the value of each cash flow stream at a 0 percent interest rate?