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Calculate the present value of the income stream

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An income stream that has a negative flow of $200 per year for 2 years, a positive flow of $300 in the 3rd year, and a positive flow of $500 per year in Years 4 through 6. The appropriate discount rate is 4% for each of the first 3 years and 5% for each of the later years. Thus, a cash flow accruing in Year 6 should be discounted at 5% for some years and 4% in other years. All payments occur at year-end. Calculate the present value of the income stream.

Reference no: EM131428996

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