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Find the present value of the streams of cash flows shown in the following table. Assume that the firm’s opportunity cost is 13%.

B D Year Year Cash Flow $10,000 $5,200/yr $7,200 Year 1-5 6-10 Cash Flow - $2,100 $3,000 $4,000 $5,900 $8,200 C Cash Flow $11
a. The present value of stream A is $ . (Round to the nearest dollar.)
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Answer #1
Present value of Stream A
Year Cash flow pvf@13% Present value
1 -2100 0.885 -1858.5
2 3000 0.7831 2349.3
3 4000 0.6931 2772.4
4 5900 0.6133 3618.47
5 8200 0.5428 4450.96
net present value 11333

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