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    Time Value Analysis of Uneven Cash Flow Stream

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

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    https://brainmass.com/business/financial-ratios/time-value-analysis-of-uneven-cash-flow-stream-572358

    Solution Summary

    The solution helps in calculating the present value and administering an outflow cost.

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