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 found by compounding each payment to the end of the stream and then summing the future values. 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 1using the -Select-NFVIRRNPVCorrect 5 of Item 1key.

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

0

1

2

3

4

0

660

395

260

310

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