Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help

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Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.)

Year                             Cash Flow

Year 0 (Today)               $0

Year 1                           2,000

Year 2                                    0

Year 3                              1,500

Year 4                              2,500

Year 5                              4,000

a. What is the present value (Year 0) of the cash flow stream if the opportunity cost is 10%?     

b. Add an outflow (or cost) of $1,000 at Year 0 (Today). What is the net present value if the opportunity cost remains 10% and Year 1 – 5 are unchanged?