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Consider the following uneven cash flow stream: (please show and explain math) Year Cash Flow 0 $ - 1 $ 250 2 $ 400 3
| Consider the following uneven cash flow stream: (please show and explain math) | ||||||||||
| Year | Cash Flow | |||||||||
| 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? | ||||||||||
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International Business Competing In The Global Marketplace
Authors: Charles Hill
14th Edition
1260387542, 9781260387544
