1. The following cash-flow streams need to be analyzed: END OF YEAR CASH-FLOW STREAM 1 2 3 4 w $100 $200 $200 $300 $300 600 Y 1,200 z 200 500 300 a. Calculate the future (terminal) value of each...

Extracted text: 1. The following cash-flow streams need to be analyzed: END OF YEAR CASH-FLOW STREAM 1 2 3 4 w $100 $200 $200 $300 $300 600 Y 1,200 z 200 500 300 a. Calculate the future (terminal) value of each stream at the end of year 5 with a com- pound annual interest rate of 10 percent. b. Compute the present value of each stream if the discount rate is 14 percent. 2. Muffin Megabucks is considering two different savings plans. The first plan would have her deposit $500 every six months, and she would receive interest at a 7 percent annual rate, compounded semiannually. Under the second plan she would deposit $1,000 every year with a rate of interest of 7.5 percent, compounded annually. The initial deposit with Plan 1 would be made six months from now and, with Plan 2, one year hence. a. What is the future (terminal) value of the first plan at the end of 10 years? b. What is the future (terminal) value of the second plan at the end of 10 years?