Answered

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The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow

Sagot :

Zviko

Answer:

$1,685,335

Explanation:

Hi, your question is incomplete, I have searched for the full question online and I have uploaded it as an image below.

Uneven cash flows are cash flows that are received in uneven amounts and possibly uneven periods as well.

We can simply use the CFj function of a financial calculator to determine the present value of uneven cash flows as follows :

$0 CF 0

$250,000 CF 1

$20,000   CF 2

$330,000 CF 3

$450,000 CF 4

$550,000 CF 5

$375, 000 CF 6

i/yr = 4 %

Shift NPV gives $1,685,335

Therefore,

The present value of this uneven cash flow is $1,685,335

View image Zviko
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