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year cash flow 0 $ 2,000 1 $2,000 2 0 3 $ 1,500 4 $ 2,500 5 $ 4,000 A. whatt is the net present
year | cash flow |
0 | $ 2,000 |
1 | $2,000 |
2 | 0 |
3 | $ 1,500 |
4 | $ 2,500 |
5 | $ 4,000 |
A. whatt is the net present value of the stream if the opporutunity cost of capital is 10 percent?
B. what is the value of the stream at the end of year 5 if the cash flows are invested in an account that pays 10 percent annually?
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