Question
1. Consider another uneven cash flow stream: Year 0 1 2 3 4 5 Cash Flow (RM) 2,000 2,000 0 1,500 2,500 4,000 a. What
1. Consider another uneven cash flow stream: Year 0 1 2 3 4 5 Cash Flow (RM) 2,000 2,000 0 1,500 2,500 4,000 a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent? b. What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10 percent annually? c. What cash flow today (Year 0), in lieu of the RM2,000 cash flow, would be needed to accumulate RM20,000 at the end of Year 5? (Assume that the cash flows for Years 1 through 5 remain the same.)
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