Question
Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.) Year Cash Flow Year 0 (Today) $2,000 Year 1 2,000 Year 2
Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.)
Year Cash Flow
Year 0 (Today) $2,000
Year 1 2,000
Year 2 0
Year 3 1,500
Year 4 2,500
Year 5 4,000
What is the present value (Year 0) of the cash flow stream if the opportunity cost is 10%? Show your work
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
