The present of a cash stream
It is May 1st, 2015 and you need to find the present of a cash stream that is $1 at the end of the 1st month but doubles each odd numbered month but only goes up by $1 in even months for a year where the interest rate is 10% compounded monthly?
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On Jan 1st you paid $696 to get a seies of cash flows that will be paid at the end of each quarter in the amounts of 149, 251, 120 and 220. At 12.00% compounded monthly, is this a good deal and how do you know?
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