Many financial decisions require the analysis of uneven, or nonconstant, cash flows. stock dividends typically increase over time, and investments in capital equipenent almost always generate uneven cash flows. The term cash fow (CF) denotes 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=(1+n1CF1+(t+1)tC1++(1+nnC1=t=1N(1+I)nCF1 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, if your calculator doesn't have a net future valse (NFV) key, you can calculate the NFV as follows: NFV =NFV(1+1)N One can also find the interest rate of the uneven cash flow stream wath a financial calculater and solving for the Quantitative Problemt You own a security with the cash flows shown belaw. If you require an annual return of 10%, whot is the present value of this cash flow stream? Do not round intemediate calculations. Round your answer to the nearest cent. An important application of Interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business loans. Each loan payment consists of interest and repayment of principad, This breakdown is often developed in an amortization schedule. Interest is in the first period and over the life of the loan, while the principal repayment is in the first period and it thereafter. Quantitative Problem: You need $10,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would zike you to make onnual payments for 5 years, with the first payment to be made one year from today, He requires an 8% annual return. a. What will be your annual loan payments? Do not round intermediate calculations. Roand your answer to the nearest cent. 3 3 b. How much of your first payment will be applied to interest and to principal repoyment? Do not round intermediate caleulations. Round your answers to the nearest cent. Interest: 3 Principal repayment: $