Purchase Solution

Annuities and Cash Flows

Not what you're looking for?

Ask Custom Question

To find the present value of an uneven series of cash flows, you might find the PVs of the individual cash flows and then sum them. Annuity procedures can never be of use, even if some of the cash flows constitute an annuity (for example, $100 cash for Years 3, 4, 5, and 6), because the entire series is not an annuity. Is this statement true or false? Explain.

(Answer provided in approximately 100 words.)

Purchase this Solution

Solution Summary

Annunities and cash flows are examined.

Solution Preview

False. The present value of an annuity (even cash flow) can be calculated by summing the present values for each year even though one can ...

Purchase this Solution


Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.