Value of mixed streams Find the present value of the streams of cash flows shown in the following table, Assume that the firm's opportunity cost is 14%. a. The present value of stream A is $ 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.) (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) A B C Year 1 Cash Flow -$2,000 Year Cash Flow Year Cash Flow 1 $10,000 1-5 $12,000/yr 2 $3,000 2-5 $5,200/yr 6-10 $7,900/yr 3 $3,900 6 $7,200 4 $6,100 5 $8,000 Print Done

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
Problem 1ST
icon
Related questions
Question
Value of mixed streams Find the present value of the streams of cash flows shown in the following table, Assume that the firm's opportunity cost is 14%.
a. The present value of stream A is $
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.)
(Round to the nearest dollar.)
Data table
(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
A
B
C
Year
1
Cash Flow
-$2,000
Year
Cash Flow
Year
Cash Flow
1
$10,000
1-5
$12,000/yr
2
$3,000
2-5
$5,200/yr
6-10
$7,900/yr
3
$3,900
6
$7,200
4
$6,100
5
$8,000
Print
Done
Transcribed Image Text:Value of mixed streams Find the present value of the streams of cash flows shown in the following table, Assume that the firm's opportunity cost is 14%. a. The present value of stream A is $ 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.) (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) A B C Year 1 Cash Flow -$2,000 Year Cash Flow Year Cash Flow 1 $10,000 1-5 $12,000/yr 2 $3,000 2-5 $5,200/yr 6-10 $7,900/yr 3 $3,900 6 $7,200 4 $6,100 5 $8,000 Print Done
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage