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11. Uneven castellows Tools A series of cash flows may not always necessanly be an annuty Cashflows can also be uneven and variable in amount,

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11. Uneven castellows Tools A series of cash flows may not always necessanly be an annuty Cashflows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply Consider the following: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years Year 2 Annual Cash Flows Year 3 Year 4 S180,000 $300,000 Year 1 $100.000 Year 6 $20,000 Year 5 $350,000 $725,000 s ctory The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of the uneven cash flow stream, rounded to the nearest whole dollar? $600,000 $1,775,000 51,395,097 51,975,000 ou Identify whether the stations described in the following are examples of uneven cash flows or annuity payments bols Uneven Cash Flows Annuity Payments traductory Description Debut has been donating 10of her salary at the end of every year in charity for the last three years. Her salary increased by 15 very year in the last three years You deposit certain amount of money every year to your en Ametres que dividende from enement didend yield, de change traded fund Akash barriwed some money from his friend to start a new busHe rose to pay his end 52.650 every year for the next five years to pay off his non along with trust Grade It Now Save & Continue Continue without saving

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