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 $ (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.) 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
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 $ (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.) 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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 $
(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.)
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
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