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Find the present value of the streams of cash flows shown in the following table. Assume that the firm's opportunity cost is 14%. a.The present
Find the present value of the streams of cash flows shown in the following table. Assume that the firm's opportunity cost is 14%.
a.The present value of stream A is $
b. The present value of stream B is $
c. The present value of stream C is $
A | B | C |
| ||||||||
Year | Cash Flow | Year | Cash Flow | Year | Cash Flow | ||||||
1 | $2,100 | 1 | $11,000 | 15 | 10,000/yr | ||||||
2 | $3,000 | 25 | $5,100/yr | 610 | $7,900/yr | ||||||
3 | $4,100 | 6 | $7,100 | ||||||||
4 | $6,100 | ||||||||||
5 | $8,000 |
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