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Please show all work and/or formulas! A B D E F G H I J K 1 CHAPTER 9: TIME VALUE ANALYSIS 2 Homework 4.3,

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A B D E F G H I J K 1 CHAPTER 9: TIME VALUE ANALYSIS 2 Homework 4.3, Chapter 9 3 4 Consider the following uneven cash flow stream: 5 Year Cash Flow 7 0 $4,000 3 1 0 2 1,000 0 3 1,500 1 4 3,000 2 5 4,500 3 4 a. What is the present (Year O) value of the cash flow steam if the opportunity cost rate is 6%? 5 .6 7 8 9 CO 1 2 -3 24 5 b. What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 4% annually? 26 27 18

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