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

  • Page ID
    88609
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    11.18.png

    • 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?

    This page titled 11.16: Uneven Cash Flows- Another Self-Test Practice Problem is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by Kenneth S. Bigel (Touro University) via source content that was edited to the style and standards of the LibreTexts platform.