# Calculation Of Present Value With Opportunity Cost Given And Future Value Of Money

Question

Consider the following uneven cash flow stream:

 Year Cash Flow 0 \$0 1 \$400 2 \$600 3 \$700 4 \$800 5 \$900

a. What is the present (Year 0) value if the opportunity cost (discount) rate is 8 percent?

b. Add an outflow (or cost) of \$1,500 at Year 0. What is the present value (or net present value) of the stream?

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

Summary

The question belongs to Finance and it discusses about calculation of present value with opportunity cost given and the future value of cash flow streams given.

Total Word Count 105

• Rasha

this is a very good website

• maani

I have 50 questions for the same test your page is showing only 28

• joeanne

• joeanne

hi can anyone help or guide me to my assignments. thanks

• Monik

• Cristina

This solution is perfect ...thanks

• Janete

Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

• Sandeep

Perfect bank of solution.

• Oxana

great !

• Paul Brandon-Fritzius

thanks for the quick response. the solution looks good. :)

• tina Johnson

thnx for the answer. it was perfect. just the way i wanted it.

• Giuseppe

works fine.