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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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