To find the present value of an uneven series of cash flows, you must find the PVs of the individual cash flows and then sum them Annuity procedures can never be of use, even some of the cash flows constitute an annuity (e g , $100 each for years 3, 4, 5, and 6) because the entire series is not an ...

Annuities are generally used when an even series of cash ...

To find the present value of an uneven series of cash flows, you must find the PVs

Question:

To find the present value of an uneven series of cash flows, you must find the PVs of the individual cash flows and then sum them. procedures can never be of use, even some of the cash flows constitute an (e.g., $100 each for years 3, 4, 5, and 6) because the entire series is not an Is this a correct statement? Explain.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...