Question: PROBLEM 5 Consider another uneven cash ow stream: Year Cash Flow $2,000 $2,000 $0 $1,500 $2,500 $4,000 Ul-D-WNI-IG a. What is the present (Year 0)

PROBLEM 5 Consider another uneven cash ow stream: Year Cash Flow $2,000 $2,000 $0 $1,500 $2,500 $4,000 Ul-D-WNI-IG a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent? b. What is the value of the cash flow stream at the end of Year 5 if the cash ows are invested in an account that pays 10 percent annually? c. What cash ow today (Year 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of Year 5? (Assume that the cash flows for Years 1 through 5 remain the same.) d. Time value analysis involves either discounting or compounding cash ows. Many healthcare financial management decisionssuch as bond refunding, capital investment, and lease versus buyinvolve discounting projected future cash flows. What factors must executives consider when choosing a discount rate to apply to forecasted cash flows? ANSWER a. $12,000.00 b. $19,326.12 c. $5,282.00 5282 $5,282.00 $0.00 8506.8

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