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Part III- The Time Value of Money

11.16: Uneven Cash Flows- Another Self-Test Practice Problem

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From Introduction to Financial Analysis by LibreTexts (Kenneth S. Bigel, Touro University), used under the CC BY 4.0 licence. Written for a general audience, not for NEPSE.

  • Fill in the empty cells. Use 8% as your compound and discount rate.
  • What if the order of the cash flows were exactly reversed? Answer each of the following three questions below.
  1. 1Would the nominal value of the cash flow (i.e., the bottom cell at left) be changed? Answer “Yes” or “No.”
  2. 2Would the total PVCF increase/decrease/not change?
  3. 3Would the total FVCF increase/decrease/not change?

This chapter at LibreTexts (Kenneth S. Bigel, Touro University). Tables and text are reproduced; images, videos and quizzes are not.