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?