What is the value of the stream at the end of year five

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Reference no: EM132849587

Consider another set of net cash flows:

Year         Cash Flow
0             $ 3,500
1              3,875
2              4,333
3             4,811
4                0
5             5,854

Problem a. What is the net present value of the stream if the opportunity cost of capital is 8%?

Problem 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 8% annually?

Reference no: EM132849587

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