9.3Consider another set of net cash flows:

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

b.What is the value of the stream at the end of year 5 if the cash flows are invested in an account that pays 10 percent annually?

c.What cash flow today (time 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 years 1 through 5 remain the same.)