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

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section10.4: Internal Rate Of Return (irr)

Problem 2ST

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