Consider another unequal cash flow stream: Year Cash Flow 0 $2,000 1 $2,000 2 0 3 1,500 4 2,500 5 4,000 a) What is the present value (year 0) of the cash flow stream? box if the opportunity cost rate is 10 percent? b) What is the future value (year 5) of the cash flow if the cash flows are invested in an account that pays 10 percent per year?

Answer rating: 100% (QA)

To calculate the present value of the cash flow stream we need to discount each cash flow to its pre... View the full answer