1. It is April 1, 2016 and you need to find the present value of a monthly cash stream that is $1 at the end of the 1st month, and then doubles each odd numbered month but only increases by $1 in even months. The cash stream lasts for a year and the interest rate is 12% compounded monthly.
2. Find the present value of the following year end cash flow stream: 500, (250), 1500, 937, 300, and (412). The interest rate is 11.7 per cent for the first two years, and then increases to 12.6 percent. Interest is compounded semiannually. (Numbers in parentheses are negative.)