Consider the following uneven cash flow stream:
Year	Cash Flow
0	$2,000
1	2,000
2	0
3	1,500
4	2,500
5	4,000
What is the present (Year 0) value of the cash flow steam if the opportunity cost rate is 10%?		n=year	PVIF=1/(1+r)^n
Year	Cash flow	PVIF 10%	PV		PV Total	$9,136.37			r=10% or 0.10	PV=FV/(1+r)^n
0	$2,000	1	$2,000
1	$2,000	0.909091	$1,818.18
2	0	0.826446	0
3	1,500	0.751315	1126.972
4	2,500	0.683013	1707.534
5	4,000	0.620921	2483.685
What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10% annually?
Year	Cash Flow	FVIF 10%	FV
0	$2,000
1	2,000
2	0
3	1,500
4	2,500
5	4,000