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Consider the following uneven cash flow stream: Year Cash Flow 0 $0 1 250 2 400 3 500 4 600 5 600 a. what is
Consider the following uneven cash flow stream:
Year | 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?
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