generate uneven cash flows. The term cash flow $($CF$)$ denotes $-$select$-$ cash flows, while payment $($PMT$)$ designates $-$select$-$ cash flows coming at 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:

$PV=\frac{C{F}_1}{(1+I{)}^1}+\frac{C{F}_2}{(1+I{)}^2}+$cdots$+\frac{C{F}_N}{(1+I{)}^N}={\displaystyle \underset{t=1}{\overset{N}{}}}\frac{C{F}_t}{(1+I{)}^t}$

have a net future value $($NFV$)$ key, you can calculate the NFV as follows:

$NFV=NPV(1+I{)}^N$

One can also find the interest rate of the uneven cash flow stream with a financial calculator and solving for the using the $-$ select$-$ key.

Quantitative Problem: You own a security with the cash flows shown below.

If you require an annual return of $10\%,$ what is the presem vaiuc of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent.

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