What is the net present value for opportunity cost

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Reference no: EM13179539

Find the following values for a single cash flow:

a) The future value of $500 invested at 8 percent for one year

b) the future value of $500 invested at 8 percent for five years

c) the present value of $500 to be received in one year when the opportunity cost rate is 8 percent

year cashflow

0 0

1 250

2 400

3 500

4 600

5 600

a) what is the net present value if the opportunity cost of capital (discount rate) is 10 percent?

b) add an outflow (or cost) of $1000 at year 0 . Now, what is the net present value?

Reference no: EM13179539

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