1. Find the present value of the following cash flow streams under the following conditions:   Year Cash Flow X Cash Flow...

1. Find the present value of the following cash flow streams under the following conditions:

Year Cash Flow X Cash Flow Y

1 $600 $200

2 500 300

3 400 400

4 300 500

5 200 600

a. The appropriate discount rate is 9%.

b. What is the value of each cash flow stream at a zero percent discount rate?

2. Nelson wants to buy a car that costs $35,000. He has arranged to borrow the total purchase price

of the car from her credit union at 3 percent interest rate. The loan requires quarterly payments for

a period of five years. If the first payment is due three months (one quarter) after purchasing the

car, what will be the amount of Nelson’s quarterly payment on the loan?