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    Present and future value of irregular cash flow stream

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    Present and Future Value

    Now consider an irregular cash flow stream (where CFs can take on any value).

    a. Calculate the Present Value of the Uneven Cash Flows. Interest Rate = 10%
    T=0 T=1 T=2 T=3 T=4 T=5
    $0 $100 $300 $300 $300 $500

    b. Calculate the Future Value of the Uneven Cash Flows.Interest Rate = 12%
    T=0 T=1 T=2 T=3 T=4 T=5
    $0 $100 $300 $300 $300 $500

    c. Assume that an investment with the following positive cash flows has a cost of $957.90 (outflow). Find the rate of return on this investment.

    d. How many years does it take for an investment to double if the interest rate is 1.25%?

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    https://brainmass.com/business/capital-budgeting/present-future-value-irregular-cash-flow-stream-404214

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    Solution Summary

    The present and future value of irregular cash flow streams are determined.

    $2.19