Question 1160352
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, 
$300 at the end of the fifth year. 


a. Find the present value if the interest rate is 8 percent.

b. What would happen to the present value of this stream of cash flows if the interest rate were 0 percent?


see the attached spreadsheet printout.
<img src = "http://theo.x10hosting.com/2020/060202.jpg" alt="$$$" >