Answer:
The total Present value of the stream of the firm cash flow is $79,348
Step-by-step explanation:
Complete Question is as follows "Find the present value of the following stream of cash flows assuming that the firms opportunity costs is 9 percent.
1-5 years - $10,000 - Annual
6-10 years - $16,000 - Annual
Year Cash flow$ PVF at 9% Present Value$
[ 1/ (1+0.09)^n ]
1 10000 0.9174 9174
2 10000 0.8417 8417
3 10000 0.7722 7722
4 10000 0.7084 7084
5 10000 0.6499 6499
6 16000 0.5963 9540.8
7 16000 0.547 8752
8 16000 0.5019 8030.4
9 16000 0.4604 7366.4
10 16000 0.4224 6758.4
Total $79,348