Book: Healthcare Financial Management and Introduction to accounting and Financial Management (Louis.C. Gapenski)

9.6 problem (page 324)

9.6 Consider the following uneven cash flow stream:

YEARS	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?