Question
PROBLEM 4 Consider the following uneven cash flow stream: Year Cash Flow 0 $0 1 $250 2 $400 3 $500 4 $600 5 $600 a.
PROBLEM 4
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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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
15th edition
978-1118147290
