What is the future value of cash flow stream

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Reference no: EM131966515

A company is expanding its operations. It costs $2,000 today to invest in a simple software upgrade to expand sales, and it produces the following incremental cash flows over time: negative $500 at the end of Year 1; $5,000 at the end of Year 2; $0 at the end of Year 3 and $1,900 at time 4. Using interest rate of 3%, answer the questions:

a. What is the present value of the cash flow stream?

b. What is the future value of the cash flow stream?

Reference no: EM131966515

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