What is the present value or net present value

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Reference no: EM13878805

9.6 Consider the following uneven cash flow stream:

Year Cash Flow

0 $ 0

1 250

2 400

3 500

4 600

5 600

A. What is the present (Year 0) value if the opportunity cost (discount) rate is 10 percent?

B. Add the outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the stream?

*******Please list the answer step by step so I can understand the answer.

Reference no: EM13878805

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