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
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...
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