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Consider the following uneven cash flow stream: Year Cash Flow 0 $0 1 $600 2 $700 3 $750 4 $850 5 $900 a. What is
| Consider the following uneven cash flow stream: | ||||||||
| Year | Cash Flow | |||||||
| 0 | $0 | |||||||
| 1 | $600 | |||||||
| 2 | $700 | |||||||
| 3 | $750 | |||||||
| 4 | $850 | |||||||
| 5 | $900 | |||||||
| a. What is the net present value if the opportunity cost (discount) rate is 11 percent? | ||||||||
| b. Add an ouflow (or cost) of $1,400 at Year 0. What is the present value (or net present value) of the stream? | ||||||||
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