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(a)what is the present (year 0) value if the opportunity cost (discount) rate is 10%? (b) add on out flow (or cost) of $1000 at

(a)what is the present (year 0) value if the opportunity cost (discount) rate is 10%? (b) add on out flow (or cost) of $1000 at year 0. What is the present value (or net present value) of the stream?

Year

Cash Flow

0

$0

1

$250

2

$400

3

$500

4

$600

5

$600

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