## Solution Library

# 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**

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