Problem 13: Value of a Mixed Stream 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 1-5 1 -$2,000 1 $ 10,000 Cash Flow $ 10,000/yr 8,000/yr 2 3,000 2-5 6-10 3 4,000 6 4 6,000 5 8,000 5,000/yr 7,000
Problem 13: Value of a Mixed Stream 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 1-5 1 -$2,000 1 $ 10,000 Cash Flow $ 10,000/yr 8,000/yr 2 3,000 2-5 6-10 3 4,000 6 4 6,000 5 8,000 5,000/yr 7,000
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.4: Internal Rate Of Return (irr)
Problem 2ST
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![Problem 13: Value of a Mixed Stream
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
1
- $2,000
1
$ 10,000
1-5
Cash Flow
$ 10,000/yr
8,000/yr
2
3,000
2-5
6-10
4,000
6
6,000
8,000
3
4
5
5,000/yr
7,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff66512a7-b739-4f98-ba2c-c6f87ac88058%2Fff881646-5383-4d60-8e68-b980a94604e6%2Ffbbf1vi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 13: Value of a Mixed Stream
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
1
- $2,000
1
$ 10,000
1-5
Cash Flow
$ 10,000/yr
8,000/yr
2
3,000
2-5
6-10
4,000
6
6,000
8,000
3
4
5
5,000/yr
7,000
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