Opportunity cost, What is the present (Year 0) value if the

Opportunity cost

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Reference no: EM13913924

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?

Reference no: EM13913924

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