11.16 Uneven Cash Flows: Another Self-Test Practice Problem

 

  • 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. Would the nominal value of the cash flow (i.e., the bottom cell at left) be changed? Answer “Yes” or “No.”
  2. Would the total PVCF increase/decrease/not change?
  3. Would the total FVCF increase/decrease/not change?

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Introduction to Financial Analysis Copyright © 2022 by Kenneth S. Bigel is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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