Uneven cash flows

A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply.

Consider the following case:

The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next three years:

Annual Cash Flows

$\backslash$table$[[$Year $1,$Year $2,$Year $3],[$$$100,000,$$$20,000,$$$480,000$