Using only the information in the accompanying table, answer the questions that follow.
a. Determine the present value' of the mixed stream of cash flows using a 5% discount rates.
b. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your investments?
c. What effect, if any, would a 7% rather than a 5% opportunity cost have on your analysis? (Explainverbally.)