Present and future value of irregular cash flow stream
Not what you're looking for?
Please see attached file for proper format.
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%?
Purchase this Solution
Solution Summary
The present and future value of irregular cash flow streams are determined.
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.