The present value of an uneven cash flow stream is the sum of the PVs of the individual cash flows. The equation is:

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 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 -Select-net of future value (NFV)internal rate of return (IRR)net of present value (NPV)Correct 4 of Item 1 using the -Select-NFVIRRNPVCorrect 5 of Item 1 key.

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

0

1

2

3

4

0

610

385

230

280

If you require an annual return of 12%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent.