Please show all steps to finding the answer by hand.
1.) You have provided your client with a legal service worth $8,500. Your client offers you the following cash flows instead of paying $8,500 today. Should you accept his offer if your opportunity cost is 10 percent?
|
Year
|
Cash Flow
|
|
1
|
$4,000
|
|
2
|
3,000
|
|
3
|
2,000
|
|
4
|
2,000
|