Consider the following uneven cash flow stream: Year Cash Flow 0 1 2 3 5 $0...
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Consider the following uneven cash flow stream: Year Cash Flow 0 1 2 3 5 $0 $3,762 $6,747 $5,871 $7,128 $5,568 D a. What is the present (Year 0) value if the opportunity cost (discount) rate is 9.5 percent? 2 3 4 5 b. Add an outflow (or cost) of $10,000 at Year 0. What is the present value (or net present value) of the stream? Consider the following uneven cash flow stream: Year Cash Flow 0 1 2 3 5 $0 $3,762 $6,747 $5,871 $7,128 $5,568 D a. What is the present (Year 0) value if the opportunity cost (discount) rate is 9.5 percent? 2 3 4 5 b. Add an outflow (or cost) of $10,000 at Year 0. What is the present value (or net present value) of the stream?
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To calculate the present value of the uneven cash flow stream you can use the formula ... View the full answer
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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