Homework Answers
Cash flow at time 0 = C0 = -$10000 [Investment is a cash outflow so, its value will be negative]
Cash flow at time 1 = C1 = $5000 [cash inflows are positive]
Cash flow at time 2 = C2 = $5000 [cash inflows are positive]
Cash flow at time 3 = C3 = $5000 [cash inflows are positive]
Below is the table depicting the three-year time line:
| Time | 0 | 1 | 2 | 3 |
| Cash flow | -10000 | 5000 | 5000 | 5000 |
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