1 $22,500 $7,500
2 $18,750 $11,250
3 $15,000 $15,000
4 $11,250 $18,750
5 $7,500 $22,500
Totals $75,000 $75,000
a. Find the present value of each stream using a 14?% discount rate.
b. Compare the calculated present values and discuss them in light of the undiscounted cash flows totaling ?$75,000 in each case.