Homework SourseThis Question 6 pts 11 of 11 0 complete This Quiz 59 p Value
This Question: 6 pts 11 of 11 (0 complete) This Quiz: 59 p Value or mixed streams Find the present value of the streams of cash nows shown in the following table,? Assume that the firm\'s opport rity cost is 14%, The present value of stream A is s(Round to the nearest dollar.) b. The present value of stream B (Round to the nearest dollar) C. The present value of stream C is 4] (Round to the nearest dollar) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Year Year Cash Flow Year Cash Flow -$2,000 $3,000 $3,900 $6,100 $8 200 2-5 6-10 $8.000yr $5.100/yt $7,100 Print Done Enter your ansiwer in each of 
Solution
a)
Present value = -2,000 / ( 1 + 0.14)1 + 3,000 / ( 1 + 0.14)2 + 3,900 / ( 1 + 0.14)3 + 6,100 / ( 1 + 0.14)4 + 8,200 / ( 1 + 0.14)5
Present value = $11,057
b)
Present value = 10,000 / ( 1 + 0.14)1 + 5,100 / ( 1 + 0.14)2 + 5,100 / ( 1 + 0.14)3 + 5,100 / ( 1 + 0.14)4 + 5,100 / ( 1 + 0.14)5 + 7,100 / ( 1 + 0.14)6
Present value = $25,042
c)
Present value = 11,000 / ( 1 + 0.14)1 + 11,000 / ( 1 + 0.14)2 + 11,000 / ( 1 + 0.14)3 + 11,000 / ( 1 + 0.14)4 + 11,000 / ( 1 + 0.14)5 + 8,000 / ( 1 + 0.14)6 + 8,000 / ( 1 + 0.14)7 + 8,000 / ( 1 + 0.14)8 + 8,000 / ( 1 + 0.14)9 + 8,000 / ( 1 + 0.14)10
Present value = $52,028
