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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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