Consider the follow stream of cash flows received at the end of the year.
Year Cash Flow
1 900
2 900
3 900
4 900
5 900
6 900
7 900
8 900
9 900
10 2,000
a. Determine the present value of the cash flows using a 5% discount rate. (Round to nearest dollar)
b. Determine the present value of the cash flows if $900 is distributed for 20 years. (Round to nearest dollar)
c. Determine the present value of the cash flows if $900 is distributed forever. (Round to nearest dollar)