You have an opportunity to make an investment that will pay ​$100 at the end of the first​ year, ​$400 at the end of the second​ year, ​$200 at the end of the third​ year, ​$100 at the end of the...

You have an opportunity to make an investment that will pay

at the end of the first​ year,

at the end of the second​ year,

at the end of the third​ year,

at the end of the fourth​ year, and

at the end of the fifth year.

a.  Find the present value if the interest rate is

percent. ​ (Hint: You can simply bring each cash flow back to the present and then add them up. Another way to work this problem is to either use the

function in Excel or to use your CF key on a financial

​you'll want to check your​ calculator's manual before you use this key. Keep in mind that with the

function in​ Excel, there is no initial outlay. That​ is, all this function does is bring all the future cash flows back to the present. With a financial​ calculator, you should keep in mind that

is the initial outlay or cash flow at time​ 0, and, because there is no cash flow at time​ 0,

b.  What would happen to the present value of this stream of cash flows if the interest rate were zero​ percent?