Find the present value of the streams of cash flows shown in the following table. Assume that the firm's opportunity cost is 12%. A B C Year Cash Flow Year Cash Flow Year Cash Flow 1 -$2,000 1 $ 10,000 1-5 $ 10,000/yr 2345 5 2 3,000 2-5 5,000/yr 6-10 8,000/yr 4,000 6 7,000 6,000 8,000
Find the present value of the streams of cash flows shown in the following table. Assume that the firm's opportunity cost is 12%. A B C Year Cash Flow Year Cash Flow Year Cash Flow 1 -$2,000 1 $ 10,000 1-5 $ 10,000/yr 2345 5 2 3,000 2-5 5,000/yr 6-10 8,000/yr 4,000 6 7,000 6,000 8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Find the present value of the streams of cash flows
shown in the following table. Assume that
the firm's opportunity cost is 12%.
A
B
C
Year
Cash Flow
Year
Cash Flow
Year
Cash Flow
1
-$2,000
1
$ 10,000
1-5
$ 10,000/yr
2345
5
2
3,000
2-5
5,000/yr
6-10
8,000/yr
4,000
6
7,000
6,000
8,000
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