Year Cash Flow A Year Cash Flow B 0 $0 0 $0 1 $250 1 $600 2 $400 2 $600 3 $500 3 $500 4 $600 4 $400 5 $600 5 $250 a.
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Year Cash Flow A  Year Cash Flow B 0 $0 0 $0 1 $250 1 $600 2 $400 2 $600 3 $500 3

$500 4 $600 4 $400 5 $600 5 $250 a. What is the present (Year 0) value of each stream if the opportunity cost (discount) rate is 15 percent? b. Which stream is more valuable? Explain why.  

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