Calculation Of Present Value With Opportunity Cost Given And Future Value Of Money
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Question
Consider the following uneven cash flow stream:
|
Year |
Cash Flow |
|
0 |
$0 |
|
1 |
$400 |
|
2 |
$600 |
|
3 |
$700 |
|
4 |
$800 |
|
5 |
$900 |
a. What is the present (Year 0) value if the opportunity cost (discount) rate is 8 percent?
b. Add an outflow (or cost) of $1,500 at Year 0. What is the present value (or net present value) of the stream?
c. What is the future value of the cash flow stream?
Summary
The question belongs to Finance and it discusses about calculation of present value with opportunity cost given and the future value of cash flow streams given.
Total Word Count 105
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