Value of mixed streams Find the present value of the streams of cash flows shown in the following table, 1. Assume that the firm's opportunity cost is 13%. a. The present value of stream A is $ (Round to the nearest dollar.) b. The present value of stream B is $ (Round to the nearest dollar.) c. The present value of stream C is $ (Round to the nearest dollar.) 1: Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) A B C Year 1 Cash Flow Year Cash Flow Year Cash Flow -$1,900 1 $9,000 1-5 $10,000/yr 2 $2,900 2-5 $5,000/yr 6-10 $7,900/yr $3,900 6 $7,100 4 $5,900 5 $8,000

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
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Value of mixed streams Find the present value of the streams of cash flows shown in the following table, 1. Assume that the firm's opportunity cost is 13%.
a. The present value of stream A is $
(Round to the nearest dollar.)
b. The present value of stream B is $
(Round to the nearest dollar.)
c. The present value of stream C is $
(Round to the nearest dollar.)
1: Data Table
(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
A
B
C
Year
Cash Flow
Year
Cash Flow
Year
Cash Flow
1
- $1,900
1
$9,000
1-5
$10,000/yr
2
$2,900
2-5
$5,000/yr
6-10
$7,900/yr
3
$3,900
6
$7,100
4
$5,900
5
$8,000
Transcribed Image Text:Value of mixed streams Find the present value of the streams of cash flows shown in the following table, 1. Assume that the firm's opportunity cost is 13%. a. The present value of stream A is $ (Round to the nearest dollar.) b. The present value of stream B is $ (Round to the nearest dollar.) c. The present value of stream C is $ (Round to the nearest dollar.) 1: Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) A B C Year Cash Flow Year Cash Flow Year Cash Flow 1 - $1,900 1 $9,000 1-5 $10,000/yr 2 $2,900 2-5 $5,000/yr 6-10 $7,900/yr 3 $3,900 6 $7,100 4 $5,900 5 $8,000
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