Calculation Of Present Value With Opportunity Cost Given And Future Value Of Money

$15.00$7.001138 reads

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

Add to Cart