## Question

###### 8. Demonstrate how to find the present and future values of an uneven series of cash...

8. Demonstrate how to find the present and future values of an uneven series of cash flows?

## Answers

Example of present value Statement showing Cash flows Particulars Time PVF 6% Amount PV Cash Flows 1.00 0.9434 2,500,000.00 2,358,490.57 Cash Flows 2.00 0.8900 2,500,000.00 2,224,991.10 Cash Flows 3.00 0.8396 6,500,000.00 5,457,525.34 Present value of Cash Flows 10,041,007.01 Example of future value Statement showing computations at 9% Year Cash flow Future Value at end of Year 4 Working Notes 1.00 1,040.00 1,346.83 1040*1.09*1.09*1.09 2.00 1,270.00 1,508.89 1270*1.09*1.09 3.00 1,490.00 1,624.10 1490*1.09 4.00 2,230.00 2,230.00 2230 6,030.00 6,709.82

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