Quantitative Methods - TVM - Uneven Cash Flows Flashcards
1
Q
What is an uneven cash flow series?
A
a cash flow stream that is not equal from period to period
2
Q
what is the cash flow additivity principle?
A
present value of any stream of cash flows equals the sum of the present values of the cash flows. i.e. to get the PV of an original series, you can just add the PV of the seperate series