What is the present value of the stream of cash flows (the series of payments)?

To view a video of present value calculations, go to:

Also, view the calculations provided in the following example:
http://educ.jmu.edu/~drakepp/principles/module3/pvanex.html

Please answer questions below, based on the following facts:

If a production machine costs $18,000, and we are able to set
up the following payment arrangements with the bank:
Number of payments = 4 (one at the end of each year) Interest
Rate = 5%
Amount of each annual payment = $5,000

Questions:
1. What is the present value of the stream of cash flows (the series of
payments)?
2. Will we be provided with enough purchasing power at the present
time to be able to
purchase the machine?
3. What do you find difficult (if anything) about present value
concepts? Did your
background (economics, finance) help you understand current
examples of present value
issues?
4. Does the text do a reasonable job of explaining the role of present
value in “Capital
Budgeting Decisions”? Why?

*PLEASE SHOW ALL CALCULATIONS (WORK)

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