Attempts Keep the Highest / 1 8. 8: Time Value of Money: Uneven Cash Flows Many financial decisions require the analysis of uneven, or nonconstant, cash flows. -Select- equipment almost always generate uneven cash flows. The term cash flow (CF) denotes -Select- regular intervals. The present value of an uneven cash flow stream is the sum of the PVs of the individual cash flows. The equation is: 0 $ 1 2 3 PV = 4 CF (1+1) Similarly, the future value of an uneven cash flow stream is the sum of the FVs of the individual cash flows. Many calculators have an NFV key that lets you obtain the FV. However, f your calculator doesn't have a net future value (NFV) key, you can calculate the NFV as follows: if NFV = NPV x (1 + I). One can also find the interest rate of the uneven cash flow stream with a financial calculator and solving for the -Select- Quantitative Problem: You own a security with the cash flows shown below. CF + (1 + 1) 340 stock dividends typically increase over time, and investments in capital cash flows, while payment (PMT) designates -Select-cash flows coming at + + CFN (1+1)N N CF 1(1+1)* 0 650 350 230 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent. using the -Select-key.

8. 8: Time Yalue of Monoy: Uneven Cash Hown Many financial decisions require the ahalysis of uneven, or nonconstant, cash fows. equipment almest always generate uneven cash fows. The term cash fiow (CF) denotes regular intervals. stock dividends typically increase over time, and investanents in capial cash fows, while payment (PMT) designates The protent value of an uneven cash now stream is the sum of the PVs of the individual cash flows. The equation is: If vour caiculator doesit have a net future value (NF) ker, you can calculate the hif as follows: NFV=NoV(1+1)N. One can sive find the interest rate of the uneven cash fow stream wh a fnancal calculater and solving for the Quantitative Problem: You own a security with the casti flows shown below