1) Capital investment Decision Basics:

Find the following values for a single cash flow:

1. The future value for $700 invested at 4 percent for one year
2. The future value of $700 invested at 4 percent for 5 years
3. The present value of $700 to be received in one year when the opportunity cost rate is 4 percent
4. The present value of $700 to be received in five years when the opportunity cost is 4 percent

Consider the following net cash flow:

Year	Cash flow
0	$0
1	$250
2	$350
3	$450
4	$550
5	$650

1. What is the net present value if the opportunity cost of capital (discount ate) is 10 percent?
2. Add an outflow (or cost) of $1,000 at year 0. Now, what is the present value?