Solution for QID #3941: Consider the following uneven cash flow stream: (Hint: Drawi | StudyHelpMe

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?