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PV=(1+l)1CF1+(1+1)2CP2++(1+I)NCFM=t=1N(1+I)tCFt Similarly, the future value of an uneven cash flow stream is found by compounding each payment to the end of the stream and then
PV=(1+l)1CF1+(1+1)2CP2++(1+I)NCFM=t=1N(1+I)tCFt Similarly, the future value of an uneven cash flow stream is found by compounding each payment to the end of the stream and then summing the future values. Many calculators have an NFV key that le One can also find the interest rate of the uneven cash flow stream with a financial calculator and solving for the NFV=NPN(1+I)N Hide Feedback Correct Quantitative Problem: You own a security with the cash flows shown below. Peri Cash 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. Hide Feedbrick using the key. Incorrect - Check My Work Feedback Review the general PV equation for valuing an asset with an uneven cash flow stream. If using a financial calculator, be careful to enter zero for CF0. Otherwise, your present value calculation will be overstated
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