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There are two ways of calculating present and future values when there are multiple cash flows. Both approaches are straightforward extensions of our earlier analysis
There are two ways of calculating present and future values when there are multiple cash flows.
Both approaches are straightforward extensions of our earlier analysis of single cash flows.
1. Explain the variations on the calculations of these values.
2. What considerations are made when determining which method you use to calculate present and future values?
3. How are cash flows affected when one method is used over another?
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