When we have unequal cash flows, we must first [...] and then [...]
Answer
find the present value of each individual cash flow
the sum of the respective present values.
Tags
#reading-6-tvm
Question
When we have unequal cash flows, we must first [...] and then [...]
Answer
?
Tags
#reading-6-tvm
Question
When we have unequal cash flows, we must first [...] and then [...]
Answer
find the present value of each individual cash flow
the sum of the respective present values.
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Subject 5. The Future Value and Present Value of a Series of Uneven Cash Flows series of uneven cash flows means that the cash flow stream is uneven over many time periods. There is no single formula available to compute the present or future value of a series of uneven cash flows.
Present Value
<span>When we have unequal cash flows, we must first find the present value of each individual cash flow and then the sum of the respective present values. (This is usually accomplished with the help of a spreadsheet.)
Future Value
Once we know the present value of the cash flows, we can easily apply time-value eq
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