B D E F 49 PROBLEM 3 50 Consider the following uneven cash flow stream: 51 Year Cash Flow 52 0 SO 53 1 $350 54 2 $450 55 3 S400 56 4 $550 57 5 $600 58 59 a. What is the present (Year 0) valve if the opportunity cost (discount) rate is 11 percent? 60 61 62 63 64 65 66 67 68 69 b. Add an ouflow (or cost) of $1,000 at Year 0. What is the present valve (or net present valve) of the stream? 70 71 72 73 74 B D E F 49 PROBLEM 3 50 Consider the following uneven cash flow stream: 51 Year Cash Flow 52 0 SO 53 1 $350 54 2 $450 55 3 S400 56 4 $550 57 5 $600 58 59 a. What is the present (Year 0) valve if the opportunity cost (discount) rate is 11 percent? 60 61 62 63 64 65 66 67 68 69 b. Add an ouflow (or cost) of $1,000 at Year 0. What is the present valve (or net present valve) of the stream? 70 71 72 73 74