What is the present value if discount rate is ten percent


Problem

Consider the following uneven cash flow stream:

Year 0: $0
Year 1: $250
Year 2: $400
Year 3: $500
Year 4: $600
Year 5: $600

1) What is the present value if the discount rate is 10 percent?
2) Add a cash outflow (or cost) of $1,000 at Year 0. What is the present value (or net present value) of the total cash flow stream now?

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Financial Accounting: What is the present value if discount rate is ten percent
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