1. With a 10% interest rate, calculate the present value of the following streams of cash flow
$1,000 per year forever
$500 per year forever, with the first payment two years from now
$2,420 per year forever, with the first payment three years from now.
2. Suppose you deposit $100 at the end of each year for three years in an account paying 8%. What is the present value of the cash flow stream? (Equal Cash Flow)