What is the present year 0 value if the opportunity cost


Consider the following uneven cash flow stream:

   Year   Cash Flow

   0   $0 

   1   $250

   2   $400

   3   $500

   4   $600 

   5   $600 

a. What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?

b. Add an outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream?

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Financial Management: What is the present year 0 value if the opportunity cost
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