Clculate the current market value of the cash ow stream


Suppose you expect to receive $150,000 in one year and $200,000 in two years. The OCC for this cash flow stream is 17%.

a. Calculate the current market value of the cash áow stream.

b. Suppose the cash flow stream is delayed by three years. Calculate the value of the delayed stream.

c. Suppose instead that the cash flow stream is delayed by 10 years. Calculate the value of the delayed stream in this case.

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Financial Management: Clculate the current market value of the cash ow stream
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