Calculate the present value of the cash flow stream

Question

Assignment:

When the Genesis Energy and Sensible Essential teams held their  weekly meeting, the time value of money and its applicability yielded an  extremely stimulating discussion. However, most of the team members  from Genesis Energy were very perplexed. Sensible Essential Consulting  decided the most expedient way to demonstrate how interest rates as well  as time impact the value of money was to use examples. You have been  asked to prepare a report analyzing your findings of the three example  calculations listed below.

In this assignment, you will do the following:

1. Calculate the future value of $100,000 ten years from now based on the following annual interest rates: 
   1. 2%
   2. 5%
   3. 8%
   4. 10%
2. Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows: 
   1. Year 1 = $100,000
   2. Year 2 = $150,000
   3. Year 3 = $200,000
   4. Year 4 = $200,000
   5. Year 5 = $150,000
   6. Years 6-10 = $100,000
3. Calculate the present value of the cash flow stream in problem 2 with the following interest rates: 
   1. Year 1 = 8%
   2. Year 2 = 6%
   3. Year 3 = 10%
   4. Year 4 = 4%
   5. Year 5 = 6%
   6. Years 6-10 = 4%

Perform your calculations in an Excel spreadsheet. Copy the  calculations in a Word document. In addition, write a 2- to 3-page executive summary in Word format. Your summary should reflect a proper  analysis of your findings, including a comparison and contrast of data.