document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1160352>Question 1160352</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You have an opportunity to make an investment that will pay $100 at the end of the first year, $400 at the end of the second year, $400 at the end of the third year, $400 at the end of the fourth year, and $300 at the end of the fifth year.\r<BR>\n" );
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document.write( "a. Find the present value if the interest rate is 8 percent.\r<BR>\n" );
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document.write( "b. What would happen to the present value of this stream of cash flows if the interest rate were 0 percent? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #783661 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=783661\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You have an opportunity to make an investment that will pay:<BR>\n" );
document.write( "$100 at the end of the first year,<BR>\n" );
document.write( "$400 at the end of the second year,<BR>\n" );
document.write( "$400 at the end of the third year, <BR>\n" );
document.write( "$400 at the end of the fourth year, <BR>\n" );
document.write( "$300 at the end of the fifth year. \r<BR>\n" );
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document.write( "a. Find the present value if the interest rate is 8 percent.\r<BR>\n" );
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document.write( "b. What would happen to the present value of this stream of cash flows if the interest rate were 0 percent?\r<BR>\n" );
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document.write( "see the attached spreadsheet printout.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2020/060202.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( " </SPAN>\n" );
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