Question
9.6 Consider the following uneven cash flow stream: YEAR CASH FLOW 0 $0 1 250 2 400 3 500 4 600 5 600 a. What
9.6 Consider the following uneven cash flow stream:
YEAR CASH FLOW
| 0 | $0 |
| 1 | 250 |
| 2 | 400 |
| 3 | 500 |
| 4 | 600 |
| 5 | 600 |
a. What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?
b. Add an outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream?
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
