9 PROBLEM 3 Consider the following uneven cash flow stream: Year Cash Flow 2 0 $0 3 1 $350 14 2 $450 5 3 $400 6 4 $550 7 5 $600 8 9 a. What is the present (Year 0) value if the opportunity cost (discount) rate is 11 percent? 10 11 2 3 14 35 56 7 38 9 b. Add an outlow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream? 10 1 12 13 75 16