Question: Back to Assignment Attempts: Average: 12 5. Uneven cash flows A series, or stream, of cash flows may not always necessarily be an annuity. Cash

 Back to Assignment Attempts: Average: 12 5. Uneven cash flows A
series, or stream, of cash flows may not always necessarily be an

Back to Assignment Attempts: Average: 12 5. Uneven cash flows A series, or stream, of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and nonconstant, but the concept of the time value of money applies to uneven cash flows as well Consider the following case: Swanky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next 6 years: Year Annual Cash Flows $1,500,000 $2,000,000 $5,250,000 55,800,000 $6,950,000 $5,000,000 to you Mer your The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream (rounded to the nearest whole dollar)? $19,250,000 $26,500,000 $18,720,696 $12,542,226 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: is to your her your Description Gilberto has been donating 10% of his salary at the end of every year to charity for the last three years. His salary increased by 15% every year in the last three years Uneven Cash Flows Annuity Payments You deposit a certain equal amount of money every year into your pension und Wan receives quarterly dividends from his investment in a high-dividendid e xchange-traced und Paolo borrowed some money from his friend to start a new business. He promises to pay his friend 52.650 every Year for the next five years to pay than ang with rest

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