Uneven Cash Flow Stream

Uneven Cash Flow Stream
Uneven Cash Flow Stream

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Uneven Cash Flow Stream

Use the table below to answer the following:

  1. What are the present values of the following cash flow streams if they are compounded at 5 percent annually?
  2. What are the PVs of the streams at 0 percent compounded annually?
 012345
Stream A$0$100$400$400$400$300
Stream B$0$300$400$400$400$100

The concepts of cash-flow instances and cash-flow streams are used to describe the business perspective of a proposal. A cash-flow instance is a specific amount of money flowing into or out of the organization at a specific time as a direct result of some proposal.

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