• $2000
• $2,000
• 0
• 1,500
• 2,500
• 4,000

• What is the net present value of the stream if the opportunity cost of capital is 10 percent?

Insert your response here.

• B. What is the value of the stream at the end of year 5 if the cash flow are invested in an account that pays 20 percent annually?

Insert your response here.

C. What cash flow today (year 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of year 5? (Assume that the cash flows for year 1 through 5 remain the same.)

• Insert your response here.