CHAPTER 9: TIME VALUE ANALYSIS, Homework 4.3, Chapter 9

Consider the following uneven cash flow stream:

Year	Cash Flow
0	$2,000
1	2,500
2	0
3	1,500
4	3,000
5	4,500

a. What is the present (Year 0) value of the cash flow steam if the opportunity cost rate is 10%?

b. What is the future (Year 5) value of the cash flow stream if the cash flows are invested in an account that pays 10% annually?

Answer BOTH A & B please and thank you. :)