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Sagot :
The answer is to calculate the present value of each cash flow and then add the discounted values together.
When calculating the future value of multiple cash flows using a spreadsheet, you must calculate the present value of each cash flow and then add the discounted values together.
What is the meaning of cash flow?
A cash flow is a physical or digital flow of funds.
The phrase "cash flow" is typically used to represent payments that are projected to happen in the future, are thus unknown, and so need to be forecast using cash flows; a cash flow in its restricted sense is a payment (in a currency), especially from one central bank account to another;
A cash flow's time t, nominal quantity N, currency CCY, and account A are what make it up; symbolically, CF = CF (t,N,CCY,A).
However, it is common to use the term "cash flow" in a broader meaning to describe (symbolic) payments into or out of a company, project, or financial product.
Value, interest rate, and liquidity are only loosely correlated with cash flows. A cash flow that will occur on day tN in the future can be changed into a cash flow with the same value on day t0.
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